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Information technology services industry

Computer Sciences Corporation Signs $300 Million IT Outsourcing Agreement with General Electric

Strategic Insights

— 1 min read

Computer Sciences Corporation (CSC) and General Electric Company (GE) have signed a ten-year, $300 million information technology (I/T) outsourcing agreement. The agreement, announced in October, will see CSC managing GE's and GE Capital's data processing operations, help desk, and disaster recovery services in the UK and other European countries. Approximately 60 staff employed in Bristol will transfer to CSC. This significant partnership also includes the acquisition of GE Capital ITS's Australian operations by CSC, further expanding the company's presence in the region.

Key Takeaways:

  • The agreement is a ten-year contract worth $300 million, with CSC managing GE's and GE Capital's data processing operations, help desk, and disaster recovery services in the UK and other European countries.
  • Approximately 60 staff employed in Bristol will transfer to CSC.
  • CSC has acquired the Australian operations of GE Capital ITS, including annual revenues of approximately $200 million and employing 800 employees and 200 contractors in Australia and New Zealand.
  • This partnership further cements CSC's presence in the region, complementing its existing 3,000 employees and contractors in Australia.
  • Van B. Honeycutt, CSC chairman, president, and CEO, emphasized the potential for a long-term partnership with GE, highlighting CSC's commitment to delivering world-class IT services.
  • Mike Stout, chief technology and information officer, GE Capital, highlighted the benefits of collaboration with CSC, including access to best practices and state-of-the-art technology, which will enhance the competitive edge and quality of services for GE's customers.

Statistics:

  • $300 million: The value of the ten-year IT outsourcing agreement between CSC and GE.
  • 60: The number of staff employed in Bristol who will transfer to CSC.
  • 10 years: The duration of the outsourcing agreement.
  • 800: The number of employed staff in GE Capital ITS's Australian operations.
  • 200: The number of contractors employed in GE Capital ITS's Australian operations.
  • 200 million: The annual revenue of GE Capital ITS's Australian operations.
  • 3,000: The number of CSC employees and contractors in Australia.
  • 12 countries: The number of countries where GE Capital IT Solutions has offices.
  • $8.2 billion: The revenue of CSC for the twelve months ended October 1, 1999.

Sources:

  • Computer Sciences Corporation (CSC). El Segundo, Calif., Dec. 13 /PRNewswire/.
  • General Electric Company (GE). NYSE: GE.
  • GE Capital IT Solutions. Newport, KY.
  • CSC. El Segundo, California.
  • Fortune Magazine. The Most Admired Company in America for the second consecutive year in 1999.

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