News Release-- May 12, 1999
CSC SIGNS GLOBAL TECHNOLOGY PACT WITH PRATT & WHITNEY
El Segundo, Calif., May 12 - Computer Sciences Corporation (NYSE: CSC) today announced the signing of a contract to manage global information technology (I/T) systems for Pratt & Whitney, a unit of United Technologies Corporation.
The contract is for ten years and has an estimated value of $1.2 billion over the entire period. As a result of the agreement, Pratt & Whitney expects to achieve substantial savings.
The agreement, effective today, calls for CSC to acquire and manage Pratt & Whitney's engineering, manufacturing and business distributed systems including advanced engineering and desktop applications, Unix and NT servers and systems, 20,000 desktops and related peripherals, VMS midrange systems, help-desk and voice, video and data networks.
As part of the agreement, about 650 Pratt & Whitney employees, primarily based in East Hartford, Conn., and West Palm Beach, Fla., have accepted positions with CSC.
CSC will support Pratt & Whitney's global business operations in more than 130 countries spanning North and South America, Europe, the Pacific Rim, Asia and Australia. Pratt & Whitney will retain approximately 45 I/T specialists to direct the company's overall I/T strategy, standards and architecture. In addition, the retained staff will set security policy and administer the contract.
"We are committed to Pratt & Whitney's success as a global aerospace leader," said Van B. Honeycutt, CSC chairman, president and chief executive officer. "We believe information technology will play a strong role in Pratt & Whitney's growth as they pursue new levels of excellence in manufacturing. We're proud to be their I/T partner."
"Teaming with an I/T leader that's also a dominant player in aerospace made CSC a natural choice for us," said John Watkins, Pratt & Whitney's chief information officer. "We have a clear corporate strategy: to get the most leverage from our I/T investment through increased efficiencies; and to effectively utilize I/T to drive new ways to design and build commercial engines faster and more economically. We believe CSC is the right strategic partner for us."
Assets to be acquired by CSC as part of the pact include all desktop and laptop PCs, servers, UNIX workstations, printers, LAN and WAN hubs, routers and switches as well as all voice and video equipment.
In the area of applications, CSC will manage all legacy applications spanning manufacturing, engineering and business. CSC has also committed to significantly reducing the cost and time of applications development for Pratt & Whitney during the first five years of the partnership.
CSC will also support Pratt & Whitney's implementation of SAP to standardize business processes and drive efficiencies across the organization. The SAP project will be one of the largest in the world when completed.
Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. The company develops individual business solutions that are delivered by CSC's 50,000 employees in more than 700 offices worldwide in areas such as management and information technology consulting, systems consulting and integration, operations support and information services outsourcing.
Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. The company maintains numerous agreements with hardware or software technology companies and thus is able to identify and manage solutions specifically tailored to each client's need. CSC had revenues of $7.7 billion for the twelve months ended April 2, 1999. For more information, visit the company's web site at www.csc.com.