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Information technology services

Computer Sciences Corporation and BAE SYSTEMS Sign Six-Year $2.2 Billion IT Outsourcing Agreement

Strategic Insights

— 1 min read

Computer Sciences Corporation (CSC) and BAE SYSTEMS have signed a six-year global IT outsourcing agreement valued at $2.2 billion, extending to November 2006. The new contract supersedes the current arrangement between the two companies, which was scheduled to expire in March 2004. CSC will manage the IT infrastructure in the United States and the UK for BAE SYSTEMS, formed by the merger of British Aerospace and Marconi Electronic Systems in November 1999.

Key Takeaways:

  • The six-year contract is valued at $2.2 billion, with incremental revenues of $1.2 billion for CSC.
  • The agreement extends to November 2006 and supersedes the current arrangement that was set to expire in March 2004.
  • CSC will manage the full range of IT operations on a transatlantic basis for BAE SYSTEMS, including mainframe and midrange computers, servers and desktops, to wide and local area networking, Internet services, help-desk, applications support, and procurement.
  • The relationship calls for the transition of an additional 600 IT staff (430 in the UK and 170 in North America) from BAE SYSTEMS to CSC.
  • CSC will be responsible for global service delivery and performance for BAE SYSTEMS, with Lem Lasher, a vice president in CSC's European Consulting Group, overseeing the expanded global BAE SYSTEMS relationship.
  • This new agreement provides BAE SYSTEMS with an opportunity to focus on the global aerospace and defense business while CSC supports the company's business objectives with effective use of IT solutions.

Statistics:

  • The contract is valued at $2.2 billion (1.5 billion pounds sterling) and extends to November 2006.
  • Incremental revenues for CSC are expected to be $1.2 billion (826 million pounds sterling).
  • The number of IT staff transitioned from BAE SYSTEMS to CSC is 600 (430 in the UK and 170 in North America).
  • CSC has announced major new business awards of more than $8.9 billion since the beginning of its fiscal year on April 1.

Sources:

  • Computer Sciences Corporation and BAE SYSTEMS sign six-year IT outsourcing agreement. PRNewswire, November 1, (no date available).
  • About BAE SYSTEMS. BAE SYSTEMS, https://www.baesystems.com/
  • About CSC. Computer Sciences Corporation, https://www.csc.com/

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