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Posts Tagged ‘CSC’

Outsourcing firm CSC reports £1.77 billion loss in second quarter results

November 14th, 2011

Outsourcer CSC has posted a pre-tax loss for the second quarter of $2.85 billion (£1.77 billion), with most of the damage caused by a goodwill impairment charge of $2.69bn.

The charge arose from the company’s annual goodwill test, which showed a “discontinuity” between the market price and book value of goodwill as a result of CSC’s lower stock price.

The results were also affected by a non-cash pre-tax charge of $269m related to the settlement of CSC’s contract dispute with the US government, and integration costs of recently acquired iSOFT.

On top of this red ink, CSC’s cash position was severely affected by a $265m refund of advanced payments to the NHS. And to round it all off CSC said operating margins for the work it does slumped to 5.6 percent from the 7.8 percent last year.

Tola Sargeant, an analyst at TechMarketView, said: “Like many others we have a particular interest in the iSOFT business and CSC’s megadeals with the NHS, the future of which are still the subject of negotiations with the Department of Health.”

Sargeant pointed out that small print in the results revealed that iSOFT contributed $32 million of revenue in Q2 but made an operating loss of $27 million.
Sargeant said: “Outgoing CSC CEO Mike Laphen confirmed that NHS revenue in the period declined as a result of a ‘lower schedule of contract milestones’, no surprise there then.”

On an analyst call Laphen revealed that the Department of Health and CSC have a “target” to reach agreement on their troubled NHS IT contracts by “the end of 2011″, but there is no guarantee this will be achieved. If it isn’t CSC’s future results could continue to be stained by its NHS involvement.

An investigation by the US Securities and Exchange Commission into the business dealings of CSC has been expanded to include business done in Australia. “Intentional misconduct” had been discovered in Australia in addition to accounting errors, said CSC vice president and CFO Mike Mancuso.

Mancuso said it did not appear the issues in Australia were on the scale of what happened with CSC’s Nordic operations, but were “nonetheless disturbing”.

Source:http://www.mis-asia.com/tech/industries/outsourcing-firm-csc-reports-177-billion-loss-in-second-quarter-results/

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CSC signs IT operations outsourcing contract with ETS

November 1st, 2011

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CloudCompute infrastructure is built on the Vblock infrastructure platform from Virtual Computing Environment company

CSC has signed a five-and-a-half year information technology (IT) operations outsourcing contract renewal and expansion with educational testing and assessment organisation Educational Testing Service (ETS).

Under the agreement, CSC will provide its cloud services to ETS including CloudCompute, the new infrastructure as a service (IaaS) architecture deployed in the CSC Trusted Cloud Datacentres.

CloudCompute is a VMware vCloud Datacenter Service that delivers compute, storage and network resources “as a service” to support any application and is especially suited for hosting mission-critical and business-critical workloads.

In addition, CSC will also provides service desk, end-user support, network support, distributed computing, security operations, disaster recovery and data centre management services.

The CloudCompute infrastructure is built on the Vblock Infrastructure Platform from the Virtual Computing Environment Company. The virtualisation software, networking, security, computing, storage and management technologies from Cisco, EMC and VMware are integrated with the help of Vblock.

ETS vice-president and chief information officer Daniel Wakeman said CSC has provided IT offerings for ETS since 2001.

“We are pleased to continue our long time relationship with CSC and are confident their IT solutions will have a positive effect on ETS business,” said Wakeman.

CSC Global Cloud Services and Software vice-president Siki Giunta said customers like ETS are invaluable to CSC because they are proactive in offering insights and feedback about their experience with CSC’s cloud services.

“As more organisations successfully leverage the CSC cloud to introduce agility into their IT operations, our position as a global leader in managed services across all delivery vectors continues to grow and evolve,” said Giunta.

Source:http://itservices.cbronline.com/news/csc-signs-it-operations-outsourcing-contract-with-ets-311011

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CSC signs five-year IT-operations outsourcing agreement with Telenor Sweden

October 20th, 2011

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To implement BizCloud to virtualise and modernise Telenor Sweden’s IT operations

SC has signed a five-year IT-operations outsourcing agreement with mobile operators Telenor Sweden.

To virtualise and modernise Telenor Sweden’s IT operations CSC will implement its on-premise private cloud offering, BizCloud. With BizCloud Telenor is benefitted from the agility and commercial flexibility of the cloud.

Under the agreement some Telenor employees will be transferred to CSC. The transfer process will be completed by January 2012, when CSC assumes full responsibility for delivery of secure, scalable and simplified services for Telenor.

CSC BizCloud is billed as a service from a standard rate card and it is built on the cloud fabric Vblock from VCE Company, a fully integrated offer featuring the VMware hypervisor, Cisco network and compute and EMC storage.

Telenor Sweden chief IS/IT and operations officer Martin Petersén said CSC has clearly demonstrated its capacity to deliver offerings that will contribute to both Telenor’s operations and overall objectives.

“We expect that CSC’s effort to modernize our entire server infrastructure will benefit both our customers and internal processes,” said Petersén.

CSC Technology & Consumer Group president Mary Jo Morris said CSC is delighted that Telenor Sweden selected CSC as their partner in this strategic initiative and that Telenor recognise the unique value proposition CSC offer for cloud services.

“This new contract underpins our firm commitment to Telenor Sweden’s long-term success, and strengthens our position within the Telco industry,” said Morris.

Source:http://outsourcingbpo.cbronline.com/news/csc-signs-five-year-it-operations-outsourcing-agreement-with-telenor-sweden-191011

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North American Data Center Outsourcing Market 2010-2014

September 16th, 2011

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Technavio’s analysts forecast the Data Center Outsourcing market in North America to grow at a CAGR of 12 percent over the period 2010-2014. One of the key factors contributing to this market growth is the increasing need to reduce data center capital and operational costs. The Data Center Outsourcing market in North America has also been witnessing increasing adoption of private cloud-based data center outsourcing. However, the growing number of end-users’ concerns for data center security could pose a challenge to the growth of this market.

Key vendors dominating this market include HP, IBM, CSC, and Dell.

Technavio’s North America Data Center Outsourcing Market 2010 -2014 report has been prepared based on an in-depth analysis of the market with inputs from industry experts. The report focuses specifically on North America and the current Data Center Outsourcing market landscape and its growth prospects. The report also includes a discussion on the key vendors operating in this market.

Source:http://www.marketwatch.com/story/north-american-data-center-outsourcing-market-2010-2014-2011-09-15

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CSC acquires Brazilian IT Services Firm Vixia

June 7th, 2011

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CSC today announced it has acquired VIXIA Consultoria e Tecnologia Ltda., a São Paulo-based IT services firm focused on providing core operational software, business consulting and systems integration services to leading insurance, reinsurance and financial institutions in Brazil. The combination of CSC and VIXIA will offer the Latin American market a proven, global portfolio of financial services-specific applications and services, along with deep, local market and service delivery expertise. The acquisition advances CSC’s position to support the expansion objectives of its multinational clients, as well as its position to pursue and win new business in this emerging financial services market. Financial terms of the agreement were not disclosed.

CSC announced its increased presence in Latin America in 2009, when it introduced a broad spectrum of software and services for the region’s financial services industry. This followed a strategic acquisition in Brazil which established CSC as a major provider of consulting and systems integration services. The VIXIA team will leverage CSC’s current base of business to pursue new business in Latin America.

By adding VIXIA, a previous CSC partner, CSC gains a leadership team and staff with significant experience and relationships with local insurers and banks. Having these local capabilities improves CSC’s ability to address the needs of this important emerging market, as a growing number of insurance companies and banks in Brazil and across Latin America are seeking to modernize their information technology capabilities.

“Joining forces with a leading global organization with all the financial services industry capabilities that CSC provides will enable us to offer our clients and prospects a much broader set of industry-specific and globally proven solutions and capabilities,” said Geraldo Cavagnari, president, VIXIA, who along with Wagner Antunes, sales director, will join CSC as managing directors of the Financial Services Group in Brazil. “Together, we can focus our expertise and resources to address the current and future mission-critical needs of the Latin American insurance and banking industry.”

“We welcome VIXIA to our CSC team of nearly 91,000 professionals from around the globe who help our clients meet important and complex challenges each and every day,” said Ray August, president of CSC’s Financial Services Group. “Expanding our financial services business in high-growth geographies, including Latin America, is a key thrust of our strategy, and the acquisition of VIXIA enhances CSC’s ability to serve both local and multinational clients operating in the region.”

CSC’s insurance, reinsurance and banking software supports the diverse business requirements of the region including unique country-specific regulations, languages and currencies. Financial services firms also benefit from CSC’s proven approach to providing management consulting, systems integration, and IT and business process services and outsourcing.

Source:http://www.sourcewire.com/releases/rel_display.php?relid=65184

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CSC unveils Cloud-based business process service for workers’ compensation administration

May 6th, 2011

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CSC today announced a first-of-its-kind business process service that harnesses the power of the Cloud to rapidly deliver production-ready, regulatory-compliant workers’ compensation (WC) processing for all 50 states. CSC’s new Business Process as a Service (BPaaS) offering takes traditional business process outsourcing (BPO) solutions to the next level by significantly reducing the upfront time and costs associated with establishing and customizing the carrier’s WC processing platform. CSC’s pre-built templates and an on-demand Web-based console are used to configure product rates, rules and forms for fully loaded, end-to-end insurance systems. Once implemented, CSC administers the business.

Business Process Services is a new category of offerings that spans the spectrum of BPO and BPaaS. CSC’s business process services enable clients to choose elements from the business process service continuum, making their own trade-off decisions between service environments that are: customized or standardized, dedicated or virtualized, high-touch or straight-through, longer to establish or quick to implement, and higher cost or shared (lower) cost.

“In the current economy, competitive pressures are driving insurance companies to seek solutions that balance reduced costs, high service quality, and well-managed delivery risk,” said Craig Weber, senior vice president responsible for Celent’s insurance practice. “We expect that the first wave of strong movers into core systems BPO and/or a cloud-enabled model for core systems will gain competitive momentum that will be difficult to copy.”

“When deployed expertly, cloud-enabled solutions can help insurers achieve their strategic goals faster with lower risks and costs,” said Jeffery Schwalk, president of CSC’s Property and Casualty Insurance Division. “CSC’s approach to insurance business process services employs a disciplined, reliable methodology with innovation and flexibility at its core. The new production-ready version of our BPaaS solution in the cloud is the fastest way for insurers to launch a new line of business. Carriers also gain the advantages of lower go-to-market costs, on-going variable pricing, and elimination of currency and compliance risks.”

The offering, called Workers’ Compensation as a Service, will process WC business within a virtual infrastructure on the latest POINT IN, Agency Link, Document Management and Media Management software pre-populated with the current bureau rules, rates and forms, and business settings. A proactive continuous release approach incorporates the latest NCCI and independent bureau data, as well as latest system developments, giving carriers an up-to-date environment for deployment. CSC plans to add commercial package property for 48 states to this service later this year.

Source:http://www.businesswire.com/news/home/20110505006488/en/CSC-Unveils-Cloud-Based-Business-Process-Service-Workers%E2%80%99

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CSC To Acquire Tech-Outsourcing Company Image Solutions

December 7th, 2010

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CSC (CSC) will acquire privately held information-technology outsourcing company Image Solutions Inc., a deal expected to expand CSC’s reach in the life- sciences sector.

Image Solutions founder and Chief Executive Jinsoo Kim said, “The combination of these companies will establish CSC as a strong player in health-care IT.”

CSC, which provides IT services from consumer-credit information to online- data security, has benefited lately from increased outsourcing. Buying Image Solutions will help it grow in the health-care business, since the U.S. government is pushing for increased digitization of records and payers are looking to cut health-care costs.

CSC last month reported its fiscal second-quarter earnings fell 15% on weaker revenue and margins along with sharply higher taxes. However, it raised its full-year guidance.

Shares closed Friday at $47.10 and were inactive premarket. The stock is down 18% this year.

Source:http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201012060849dowjonesdjonline000172&title=csc-to-acquire-tech-outsourcing-company-image-solutions

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