CSC secures fourth-generation ITO deal with BAE

CSC has succeeded where Xchanging so recently failed (see Xchanging loses HRO deal with BAE Systems), securing a 5-year IT outsourcing deal with long-time customer BAE Systems. The agreement extends the firms’ 17-year relationship, replacing CSC’s existing deal with BAE which was due to expire in April next year. The contract is worth up to $160m p.a. to CSC, or around $800m in total. That’s slightly more in dollar terms than the original $1.5bn/10-year deal that CSC signed with BAE in 1994, but considerably less than the $1.9bn/5-year renewal agreed in 2005: as BAE’s CIO said, CSC’s support in delivering “highly competitive, value for money services” was a factor in the renewal. But CSC would not be able to celebrate a fourth-generation outsourcing contract were it not for its strong partnership with BAE.