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News Release-- September 22, 2004
CSC NAMED NORTH AMERICAN INSURANCE BPO MARKET LEADER BY CELENT COMMUNICATIONS
Industry Analyst Firm Ranks CSC as Top Business Process Outsourcing Provider to All Tiers of Insurers
EL SEGUNDO, Calif., Sept. 22, 2004 – Computer Sciences Corporation (NYSE: CSC) announced today that it has been named the “clear leader in providing business process outsourcing (BPO) services to North American insurance carriers” by financial services technology research and advisory firm Celent Communications.
In its Aug. 31 report entitled “Insurance BPO Market Survey: Will The Watched Pot Ever Boil?” Celent collected data on approximately 300 BPO contracts – two thirds of which are based in North America – currently providing core insurance services. According to the report, CSC was the top provider to Tier 1, 2 and 3 North American insurance carriers based on number of BPO contracts. CSC was also named one of the top providers, both in terms of estimated BPO revenue and full-time insurance BPO employees, and the leader in seven of eight process categories: policy administration, general systems, call center, billing, underwriting, support functions and distribution.
“As one of the world's largest IT services providers, CSC combines significant outsourcing capabilities with insurance expertise and comprehensive insurance application software,” said Craig Weber, senior analyst in Celent’s insurance practice and author of the report. “Their strength as a BPO provider is not surprising.”
“Celent's recognition of CSC's BPO market leadership is gratifying,” said Jim Cook, president of CSC’s Financial Services Group. “Through outsourcing, CSC’s clients gain speed-to-market and financial flexibility to better execute their unique strategies.”
Celent estimates that total core insurance BPO, excluding processes such as human resources, benefits and payroll, will total more than $2.5 billion in 2004, growing to almost $3 billion by 2006. Celent suggests that virtually all insurance carriers can benefit from assessing their operations for possible BPO opportunities. To obtain a copy of the report, contact Fleur Sohtz of Celent at 212.269.7010 or via e-mail at fsohtz@celent.com.
About the Study
Celent’s report “Insurance BPO Market Survey: Will the Watched Pot Ever Boil?” was written as an independent report for Celent’s insurance research subscribers and was not sponsored or directed by CSC or any other company. More than 30 insurance BPO providers were contacted for the survey.
About Celent Communications
Celent Communications is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology, and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. For more information, please see www.celent.com.
About CSC
Founded in 1959, Computer Sciences Corporation is a leading global information technology (IT) services company. CSC’s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.
With approximately 90,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC’s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.9 billion for the 12 months ended July 2, 2004. For more information, visit the company’s Web site at www.csc.com.