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ii. The Tower Group53
Respondent's other expert was Diogo Teixeira, president of the
Tower Group, a research and consulting firm specializing in
information technology in the financial services industry. Mr.
Teixeira is widely published on issues involving software
applications in the banking industry. He lacks formal education or
training in computer science or software development, or research
in either of those fields.
The Tower Group report, although not specifically concluding
that the eight sample internal use software activities failed to
qualify for the R&E credit, found that Norwest did not develop any
technology that was not within the then-current state of the art of
the banking industry. The Tower Group summarized its findings as
follows:
It is our opinion, based on the documentation submitted
by the petitioner and on our knowledge of the US banking
industry, that the work performed by Norwest was the
normal and routine data processing activities of a bank.
The software produced by Norwest, in terms of the
products and services provided and the technology used to
support them, were all well within the then current state
of the industry. We find no characteristics which would
distinguish the overall work performed by Norwest within
the claim from the nearly $17.5 billion spent by US
53 Before trial, petitioner sought to disqualify Diogo
Teixeira and the Tower Group from serving as an expert witness at
trial because of a prior relationship between the Tower Group and
Norwest. After hearing arguments at trial and, upon due
consideration, we denied petitioner's motion for reasons
expressed on the record.
Mr. Teixeira was assisted in the preparation of the Tower
Group report by George T. Kivel, the group director of Wholesale
Banking and General Technologies.
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