PracticeConsultingBAE expands global IT outsourcing deal.

BAE expands global IT outsourcing deal.

Computer Sciences Corporation and BAE Systems have signed a six-year global IT outsourcing deal valued at $2.2bn. The contract, which extends to November 2006, supersedes the current arrangement, scheduled to expire in March 2004, under which CSC managed the former British Aerospace's IT operations.

The increased scope and duration of the new contract will provide CSC with incremental revenues of $1.2bn. CSC will now manage the IT infrastructure in the United States and the UK of BAE Systems, which was formed last year when Marconi Electronic Systems and British Aerospace merged. The new agreement follows the memorandum of understanding signed in April of this year.

The relationship, which is one of CSC’s largest global outsourcing engagements, calls for the transition of an additional 600 IT staff (430 in the UK and 170 in North America) from BAE to CSC. CSC will manage the full range of IT operations on a transatlantic basis, from mainframe and midrange computers, servers and desktops, to WANs and LANs, Internet services, help-desk, applications support and procurement.

Stephen Henwood, BAE’s director responsible for IT, said: “We will achieve real benefits from having a single point of responsibility for all of our IT requirements.”

Lem Lasher, a vice president in CSC’s European Consulting Group, will oversee the expanded global relationship. Lasher, has spent the last eight years in Europe, most recently as head of CSC’s European e-business/Internet initiative.

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