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CSC inks deal with Computing Devices

Computer Sciences has inked a 10-year, $62 million IT outsourcing contract with UK-based Computing Devices, a defense electronics systems provider.

Kim Girard
Kim Girard has written about business and technology for more than a decade, as an editor at CNET News.com, senior writer at Business 2.0 magazine and online writer at Red Herring. As a freelancer, she's written for publications including Fast Company, CIO and Berkeley's Haas School of Business. She also assisted Business Week's Peter Burrows with his 2003 book Backfire, which covered the travails of controversial Hewlett-Packard CEO Carly Fiorina. An avid cook, she's blogged about the joy of cheap wine and thinks about food most days in ways some find obsessive.
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Kim Girard
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Computer Sciences has inked a 10-year, $62 million IT outsourcing contract with UK-based Computing Devices, a defense electronics systems provider acquired by General Dynamics last year.

Under terms of the deal, Computer Sciences will hire ten Computing Devices employees, acquire all of the company's internal network and computing assets, and manage its data processing systems, according to the company. That includes all of the company's desktop and midrange computing, applications, help-desk, and network functions.

Computing Devices is headquartered in Hastings, England.

CSC, based in El Segundo, California, originally signed a 10-year, $3 billion outsourcing contract with Falls Church, Virginia-based General Dynamics in 1991. That contract was extended to three years in a pact announced May 5.

"This is the first international contract awarded to CSC by General Dynamics and marks an important enhancement to our long-standing relationship," said Van B. Honeycutt, CSC president, chairman, and chief executive officer.

Outsourcing is proving to be the new battleground for services. CSC's competitors include Andersen Consulting, as well as IBM Global Services, which ranks No. 1 in the computer services field based on revenues.

In September, CSC announced AT&T had invited the company to negotiate a contract for outsourcing applications to support consumer services, including software systems for telemarketing and customer care, provisioning, and sales compensation. Several new multiyear outsourcing contracts would potentially be worth billions of dollars to the company. Negotiations are expected to conclude in the first quarter of 1999.

The company has nearly 45,000 employees in more than 700 offices worldwide.