CSC has leapt into the second largest pot in the Australian outsourcing market with its latest two deals. The company is now well ahead of EDS but still behind IBM.
This week it signed a five-year, $A550 million outsourcing deal with AMP, following hard on the heels of its agreement with BHP to acquire the assets of BHP Information Technology, along with a seven-year outsourcing contract for BHP valued at $US470 million.
The company moved from 2800 staff and revenue of $A800 million eight months ago, to 5800 staff and projected revenue of $A1.4 billion next year, says Australasian managing director George Bell.
"It should be very healthy for the bottom line," he says. "We're now looking to get the size and scale up in New Zealand. The market seems more fragmented here, but there is opportunity in the mid-range outsourcing market and a lot of opportunity still in desktop outsourcing."
He says large outsourcing customers are looking for new things such as continous improvement, and working with knowledge brokers for innovation. "We're specifically building in the processes and resources to do that for AMP and BHP," he says.
The New Zealand subsidiary, which has been adding staff, had turnover of around $50 million last fiscal year, ended March 31, says local managing director Kimbal Riley.
"We're expecting about the same this year but with a different mix of skills and product."