Computer Sciences Corporationhas been awarded a role in the $5 billion outsourcing contract that JP Morgan Chase recently signed with IBM.
The El Segundo, Calif.-based CSC said it signed a seven-year subcontract with IBM to support a portion of JPMorgan Chase’s information technology (IT) environment. The value of the subcontract is estimated at $500 million over the life of the deal.
CSC is already providing IT services to JPMorgan Chase as part of a 1996 agreement that expires in July 2003. Under the terms of the new agreement, CSC said it would continue to manage a portion of JPMorgan Chase’s distributed computing data processing environment, which consists of about 4,000 servers. CSC is also expected to help IBM in its IT data processing delivery strategy, which it will build for JP Morgan Chase as part of the outsourcing pact.
IBM plans to take on a significant portion of JP Morgan Chase’s data processing infrastructure, including hosting data centers, help desks, distributing applications, and maintaining data and voice networks. It is also expected to help power and host mission-critical functions such as trading applications for the securities side of the banking giant’s operations.