CSC Signs Major Five-Year IT Services Contract Extension With UTC
News Release -- March 18, 2010
FALLS CHURCH, Va., March. 18 -- CSC (NYSE: CSC) today announced a five-year extension to its global information technology (IT) outsourcing agreement with United Technologies Corporation (NYSE: UTX). The extension adds over $1.5 billion in value to the existing contract, which now runs until December 2019. The extension also provides CSC with the immediate opportunity to expand into new geographies with a potential new business value of an additional $300 million.
Under the extension, CSC will continue to provide IT infrastructure support for UTC in 22 countries, supporting 110,000 desktops as well as UTC’s server and mainframe requirements. These services have resulted in continued cost reductions over the course of the partnership, while delivering high quality IT services to UTC’s businesses.
“CSC has demonstrated the technology service capabilities needed to address our requirements, especially in our aerospace and commercial marketplaces around the world,” said Nancy Davis, UTC Vice President and Chief Information Officer. “We continue to rely on CSC to support the growth of our global businesses.”
“CSC is honored to extend our long-term strategic relationship with UTC and to be given the opportunity to expand our scope in many new geographies,” said Russ Owen, President of CSC’s Managed Services Sector. “This extension demonstrates the value that our IT outsourcing services provide to our clients and reflects our continued commitment to provide UTC the most innovative, high quality and cost-effective services available in the market.”
The original contract was awarded to CSC in 1999 for IT infrastructure and applications services for approximately 50,000 desktops in North America. Since then, the partnership has continued to expand globally. CSC currently supports 110,000 desktops in 22 countries.
United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries. The company’s products include Pratt & Whitney aircraft engines, Sikorsky helicopters, Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial products, Otis elevators and escalators, UTC Fire & Security systems and UTC Power fuel cells.
CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions and Services, the Managed Services Sector and the North American Public Sector. CSC's advanced capabilities include system design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. The company has been recognized as a leader in the industry, including being named by FORTUNE magazine as one of the World’s Most Admired Companies for Information Technology Services (2010). Headquartered in Falls Church, VA., CSC has approximately 92,000 employees and reported revenue of $16.0 billion for the 12 months ended Jan. 1, 2010. For more information, visit the company’s Web site at www.csc.com.
All statements in this press release and in all future press releases that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year ended April 3, 2009 and any updating information in subsequent SEC filings. The company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law.