CSC and BAE Systems: Innovation Through Partnership
Client: BAE Systems
Challenge: Maintain an ongoing successful business partnership that provides for continued technological innovation and improved competitiveness.
Solution: Evolve what was originally an IT management and support relationship into a long-term strategic business alliance.
Results: Working with CSC, BAE Systems has achieved a number of strategic business goals including significant operational savings and reduced procurement costs.
CSC and BAE Systems have worked in partnership since 1994 when CSC was chosen to provide BAE Systems with an infrastructure that would ensure its competitiveness in the 21st Century.
Since the original partnership agreement, which was then the largest commercial IT outsourcing contract awarded to a single supplier in Europe, BAE Systems has undergone wide-reaching changes.
Growing in Partnership - A Strategic Alliance
Following a period of radical restructuring, consolidation and cost-reduction during the 1990s, the former British Aerospace merged with Marconi Electronic Systems in 2000 to become BAE Systems. This merger, and the extension of the original outsourcing agreement to include Information and Electronic Warfare Systems (IEWS) in the United States, doubled the size of the operational challenge for CSC. Throughout this period of intense change in BAE Systems' business, CSC's commitment to adding value by controlling costs, improving service delivery and generating higher shareholder returns has remained core to the success of the partnership.
Since 2000 the partnership between BAE Systems and CSC has evolved from IT management and support into a strategic alliance. To enable BAE Systems to respond cost effectively to changes in business needs and market conditions, CSC has upgraded BAE Systems' global network infrastructure and implemented an enterprise-wide service improvement program.
Helping Keep BAE Systems Competitive
A multitude of initiatives, from rationalizing the many e-mail systems in operation into one, to enabling real-time global collaboration and using technology to reduce procurement costs have been undertaken to keep BAE Systems competitive. For example:
- CSC provided a 40 percent reduction in cost per application funtion point by year three of the initial contract.
- By organizing CSC resources in fully leveraged delivery centers, CSC has been able to provide year-on-year savings in applications support and maintenance.
- CSC has £100 million invested in the BAE Systems partnership.
- Over 400 applications have been developed for BAE Systems by CSC.
- CSC has also delivered added value by proactively providing IT applications expertise in support of major BAE Systems projects.
- CSC and BAE Systems are jointly pursuing public sector and civil and defense opportunities.
Building the Future
As BAE Systems progresses towards global market leadership, CSC is delivering the technologies that support its day-to-day operations and enable it to achieve business goals in line with its long-term strategy.