CSC Expands Outsourcing Agreement With UTC

N/Agning of two contracts that stem from a master information technology (IT) agreement announced by <%=company%> (CSC) and Hartford, CT-based United Technologies Corp. (UTC) October 1999, CSC has entered into 10-year outsourcing agreements with two UTC units: Hamilton Sundstrand and Pratt & Whitney Canada. The original master agreement included the May 1999 $1.2 billion contract with Pratt & Whitney and an additional $900 million award from other UTC units.

These two new agreements are expected to generate approximately $507 million in revenue (including $350 million for Pratt Canada and $157 million for Hamilton Sundstrand) over the full 10 years. This brings the total value of CSC's contracts with UTC to date to about $2.6 billion, making it one of the largest IT outsourcing contracts yet signed.

Details of the deal
At Hamilton Sundstrand, an aerospace and industrial products manufacturer based in Windsor Locks, CN, CSC will manage mainframes, servers, a central help desk, LANs, and about 8,100 desktop units. As part of the agreement, approximately 90 employees, primarily based in Rockford, IL, San Diego, and Denver have been offered jobs with CSC. The contract was effective January 1, 2000. This new agreement covers operations of the former Sundstrand Corp., which was acquired by UTC last year and merged with Hamilton Standard to form Hamilton Sundstrand. I/T operations at Hamilton Sundstrand's other units were covered in the October 1999 agreement with UTC.

At Pratt & Whitney Canada, a Montreal-based leader in aircraft engine design and engine manufacturing, CSC will manage applications, a central help desk, midrange computers, network operations, and about 6,000 desktop units. As part of the agreement, approximately 260 employees, primarily based in Montreal and Toronto, will be offered jobs with CSC. The contract will be effective in late February, 2000. As part of the Pratt & Whitney Canada agreement, CSC will establish a new applications center in Montreal over the next 18 months, staffed by several hundred specialists.

Based in El Segundo, CA, Computer Sciences Corporation is among the world's leaders in information technology services that include outsourcing, management consulting, and systems integration. The US government accounts for about 25% of sales. Other customers include AT&T (New York), Enron Corp. (Houston), and the U.S. Postal Service.

Edited by John Spofford