RealTime IT News

CSC Inks $342M Outsource Deal

Computer Sciences Corporation has won an IT outsourcing contract from Malaysia's largest banking group worth $342 million over 10 years.

The El Segundo, calif., company, which competes with IBM and EDS for such contracts, hopes the engagement could lead to additional business in the Asia-Pacific region.

CSC will handle mainframe, midrange, desktop, hekp-desk and network infrastructure for Malayan Banking Berhad (Maybank) in Malaysia and Singapore.

The services will be delivered primarily through CSC's affiliates, Computer Systems Advisors Berhad and CSA Automated. Approximately 320 Maybank employees will transfer to CSC and its affiliates.

"This agreement will showcase CSC's ability to leverage our global strengths and experience, along with the delivery capabilities of our local affiliates, to provide business and operational results for clients," said CSC Chairman and Chief Executive Officer Van B. Honeycutt.

The Maybank deal comes a day after CSC (and five other firms) were awarded a contract worth up to $252 million from the U.S. Air Force. CSC will handle systems planning, integration and management at Air Force Information Warfare Center at Lackland Air Force Base in Texas.

An uptick in business from the federal government helped CSC post strong results in its most recent quarter. Washington is spending more money than ever to upgrade computer systems and enable computers in different agencies to talk to each other.