Five Decades of Success
A Tradition of Excellence. A Legacy of ResultsIn 1958, fewer than 4,000 computers existed in the world. Manufacturers rarely included software with their computers, so the early machines were concentrated in large organizations, such as aerospace companies, universities and government — the only entities with the resources to write the software to make these machines work.
The Pioneers: Roy Nutt and Fletcher Jones
Two young computer analysts working in the aerospace industry saw the opportunity for a new kind of business. They set out to provide computer manufacturers with complex programs known as assemblers, compilers and operating systems, to make it easier to use the computers, thereby expanding the potential markets for the products. Roy Nutt was a stellar programmer, who had developed the first widely accepted assembly program and was a member of the small IBM team that developed Fortran. Fletcher Jones, a marketing whiz, came from North American Aviation Corp., where he had managed a divisional computer center.
A Hundred Dollars and a Dream: CSC Is Born
In April 1959, five decades of pioneering, exploration and innovation got off the ground when Nutt and Jones pooled $100 to start a company that they named Computer Sciences Corporation. With Nutt providing the technical direction and Jones handling the marketing, the young company prospered, quickly gaining a reputation for innovative design and high-quality work.
Other software companies had sprung up to fill the same programming needs, but none could match CSC for flair or technical sophistication. During the next four years, the young innovators wrote system software for every major U.S. computer manufacturer.
Recognizing that the U.S. federal government was the largest computer user, and anticipating the convergence of computers and communications, CSC bought two ITT divisions engaged in communications systems engineering and systems management for the U.S. Defense Communications Agency and other clients. The acquisition gave CSC extensive capabilities in the design and development of communications-based computer systems.
The ITT acquisition was a huge success. These new capabilities enabled CSC to play an important role in support of the burgeoning U.S. space program.
The company quickly became a major supplier of IT services, a leading integrator of computer and communications systems and a premier developer of custom software. It also became, and remains today, one of the largest computer services companies in the U.S. federal government market.
- In 1961 a contract to support NASA Jet Propulsion Laboratory’s Flight Operations Facility launched CSC into the space business.
- CSC went public in 1963 and was listed the following year on the Pacific and American stock exchanges, becoming the first software company to be listed on a national exchange. In 1965 CSC captured a U.S. Atomic Energy Commission contract from General Electric, a company 1,000 times larger than CSC.
- The next year, CSC took on global competition, introducing software development skills to the European marketplace.
- In 1968 CSC became the first independent information services company to be listed on the New York Stock Exchange.
Almost from its inception, CSC looked beyond the U.S. borders for opportunities. By the end of the 1960s, CSC had a presence in Canada, Italy, Germany, the United Kingdom and The Netherlands.
paper, CSC began developing a remote processing system to link its computers with clients’ terminals around the world.
This system was the forerunner of timesharing, the next big development in the computer industry. Timesharing allowed hundreds of clients at different sites simultaneously to run their jobs on the same computer.
Once again, Jones and Nutt were among the first to understand the rapid changes occurring in information technology, and they boldly reinvented their company to take advantage of newer circumstances.
By mid-decade, Infonet was a 100,000-mile network serving 125 cities and nearly every U.S. government agency.
- In 1972 CSC was awarded its first contract with the U.S. Federal Aviation Administration to provide software support to the agency's Digital Simulation Facility.
- In 1977 AT&T selected CSC’s network to serve Bell System units across the United States.
- The following year, CSC won the California Medicaid contract, the largest contract the State of California had ever awarded.
Systems integration projects took CSC engineers all over the world as the company became truly global in scope and practices. For example, in Saudi Arabia, CSC planned and created a nationwide computer information system in Arabic and English that connected more than 75,000 pieces of hardware.
Dramatic growth and major acquisition activity marked the 1980s, as CSC saw new commercial markets emerging for its services worldwide. The company initiated an aggressive acquisition program to supplement internal growth, acquiring more than 200 large and small companies to strengthen its presence in the U.S., European and Australian markets.
- In the 1980s, CSC built Europe’s first automated teller machine system for Générale de Banque; automated the United Kingdom’s tax withholding system; developed a back-office banking system for the Australian and New Zealand Banking Group; and automated the railroad management system for the Bureau des Wagons EUROP.
- CSC engineers at Edwards Air Force Base designed and built a sophisticated flight-testing system for the world’s most advanced airplane: the B-2 stealth bomber.
In 1982, CSC launched a strategic acquisitions program to dramatically widen our presence in the credit services industry, acquiring more than a dozen credit bureaus over six years and combining databases with Equifax Inc. to create the largest national credit file in the United States.
- In 1986 CSC expanded its activities in the commercial consulting and professional services market by acquiring Computer Partners.
- In 1988 CSC's acquisition of Index Group established the company in the commercial management consulting arena.
At the end of the 1980s, CSC was a major player in the commercial marketplace. The company continued to retain its leadership in the U.S. government market, winning 90 percent of all recompeted government business and many large, new contracts.
General Dynamics Corp. (GD) was one of the first companies to seek a more cost-effective way to manage information. In 1991, CSC and GD signed the largest outsourcing deal to date, a $3 billion, 10-year contract under which CSC acquired the information technology assets of GD, hired about 2,600 of the client’s former IT staff and began providing much of the information technology needs for General Dynamics.
Soon, other large clients were embracing outsourcing, and it was time for CSC to take advantage of these new opportunities.
- In 1994 CSC signed a 10-year outsourcing agreement with British Aerospace (now BAE Systems).
- In 1995 CSC signed a $1.5 billion partnership with Hughes Electronics Corporation.
- In 1996 CSC signed a $3 billion agreement with DuPont, a contract The New York Times called "among the largest in the computer outsourcing trend that has swept American industry in the 1990s."
- In 1998 the U.S. Internal Revenue Service selected the CSC PRIME Alliance, a team of seven companies, to modernize U.S. tax systems over a 15-year period.
CSC’s global reach and industry presence grew through continued acquisitions throughout this decade, including Ploenzke AG (Germany), Ouroumoff Consultants (France) and Continuum (U.S).
During the last half of the decade, the Internet had begun to change the way the world conducted business. With its strengths in systems integration, business process outsourcing and business process management, and IT consulting, CSC was able to use its global reach to deliver total e-business solutions to large enterprises. This approach kept CSC well away from the dot-com meltdown that occurred at the turn of the millennium.
By the end of the 1990s, CSC had changed the perception that outsourcing was a last resort for financially troubled companies. Since then, the company has expanded its outsourcing offerings to include Web and application hosting as well as business process outsourcing in a wide array of industries.
The Internet became omnipresent in business and industry. CSC took a position with regard to digital business that was unique. Unlike other companies, CSC had established global scope, technology know-how, such as cloud computing, as well as a deep understanding of securing the enterprise from virtual attack.
During the 2000s, CSC built on its many decades of success by sustaining strong relationships with our clients by renewing relationships with General Dynamics, BAE and DuPont, for example, and by pursuing new opportunities across the globe. The decade has been highlighted by a number of strategic acquisitions that have expanded CSC’s competencies and industry expertise, and entries into new markets.
- In 2003, CSC's acquisition of DynCorp increased our federal employee base by more than 26,000 and broadened the scope of our U.S. federal government offerings.
- CSC’s 2007 acquisitions of Covansys and First Consulting Group strengthened our presence in India by more than 10,000 employees and signaled a growing commitment to serving clients on a global basis.
CSC now has major operations and service centers in more than 70 countries on six continents, and we continue to bolster our international presence. For example, in 2002, CSC opened its cutting-edge EMEA headquarters at Royal Pavilion in Aldershot, United Kingdom. The launch of a new IT services delivery center in China in 2008 signaled a strong commitment to continued growth in Asia. CSC also expanded our outsourcing capabilities to new markets such as Vietnam, Lithuania and Malaysia.
CSC continues to strengthen its position as a leading services provider to the U.S. federal government. Significant engagements include:
- Supporting the IRS as it modernizes the U.S. tax system
- Helping NASA open a Shared Services Center
- Numerous Department of Defense support activities, ranging from flight training to missile defense systems.
Significant international government projects include the NHS Connecting for Health program in the United Kingdom and creating citizen identity management solutions in Belgium.
In 2007, CSC launched Project Accelerate, a company-wide initiative designed to drive continued growth. As part of this strategy, CSC is placing a renewed focus on delivering business results to industry verticals. For example:
- Our commitment to the financial services industry includes an expansion of key offerings in insurance, banking and capital markets, while serving global clients such as Swiss Re and Zurich Financial Services.
- Our healthcare services portfolio has expanded to areas such as improving billing cycles as we serve major clients such as the American Red Cross and the largest nonprofit health system in the U.S.
In the ever-changing world of technology, CSC has always been willing to evolve to keep up with the times. In 2008, CSC embarked upon a major brand advertising campaign that included the introduction of a new corporate logo and a change in our name from “Computer Sciences Corporation” to CSC. Also, after being based in California for 49 years, we moved our corporate headquarters to Falls Church, Virginia. In 2009, we proudly celebrated our 50th anniversary.
Since 1959, CSC has grown from two men with $100 to a Fortune 500 industry leader by offering clients a wealth of experience and unparalleled services across numerous industries. From the beginning, the guiding spirit at CSC has been a sense of ingenuity. And that spirit continues.
Read Ingenious From Birth: Five Decades of Success (PDF 416KB).