News Release-- July 10, 1996
HYATT HOTELS SIGNS FIVE-YEAR OUTSOURCING PACT WITH THE ALLIANCE, A CSC-SDT INITIATIVE
El Segundo, Calif., July 10 -- The Alliance, a new initiative between Computer Sciences Corp. (NYSC:CSC) and The SABRE Group's SABRE Decision Technologies (SDT) division, has signed a five-year, $72 million outsourcing pact with Hyatt Hotels Corp. to manage its global information technology operations. The SABRE Group is a wholly-owned subsidiary of AMR Corp. (NYSE:AMR).
The agreement calls for The Alliance to operate and enhance the state-of-the-art central reservation system used by the Hyatt Hotel chain around the world.
CSC's responsibilities include management and strategic consulting, maintaining and enhancing Hyatt's computer infrastructure, and managing network and help desk operations. It will also operate Hyatt's UNIX-based, client-server data center in Oak Brook, Ill. SDT is responsible for applications development, legacy system management and the commercialization of software products. The employees of Hyatt's Regency Systems Solutions (RSS), the hotel's information technology unit, will transfer to CSC and SDT.
The Alliance will use Hyatt's UNIX data center and portfolio of software applications and tools tailored to the hospitality marketplace as the basis for its new venture. Hyatt's reservation system and other software applications are widely acknowledged to be among the most technologically advanced in the hospitality industry.
"The Alliance is the answer to this highly competitive industry's search for an individual solutions provider," said Thomas M. Cook, president of SDT. "Hyatt's suite of solutions -- when combined with SDT's current product line -- will allow The Alliance to provide the hospitality industry with a portfolio of best-of-breed solutions through the cost-effectiveness of outsourcing."
"Hyatt looks forward to working with CSC, a leader in information technology, and SDT, a leader in decision technology," said Douglas G. Geoga, president of Hyatt Hotels Corp. "Combining the track records of these companies with talented professionals of RSS, who know first-hand what it takes to develop superior solutions for the hospitality industry, virtually ensures The Alliance's success."
Hyatt is the first client for The Alliance, through which CSC and SDT will deliver a broad range of services to the hospitality industry, including management consulting, systems integration, packaged software solutions, outsourcing and call-center operations. The pact marks The Alliance's entry into the $280 billion worldwide hospitality market and comes at a time when many industry leaders view information technology and outsourcing as critical components for future growth.
"A new breed of leadership is emerging in the hospitality industry market that sees technology as integral to the success of the global travel industry," said Van B. Honeycutt, president and CEO of Computer Sciences Corporation.
"The Alliance will help Hyatt and other potential clients stay ahead of the technological curve by offering the full breadth of services and products from both our firms, along with a strong commitment to the hospitality market."
Hyatt Hotels Corp. operates or licenses the operation of 103 hotels and resorts in the U.S., Canada and the Caribbean, and Hyatt International, through its subsidiaries, operates an additional 67 hotels in 33 countries.
Dallas/Ft. Worth-based SDT is the world's leading provider of business solutions for the travel and transportation industry. The SABRE Group is a global leader in the electronic distribution of travel and travel-related products and services and provides data processing and solutions services primarily to travel and transportation industries.
CSC had $4.2 billion in revenues for the 12 months ended March 29, 1996. The company is headquartered in El Segundo, Calif., and has 34,000 employees in 575 offices worldwide providing clients with a wide range of professional services including management consulting, business reengineering, information systems consulting and integration, and outsourcing.