While the first 11 months of the year that passed by showered at least six mega deals (more than 200 million in size) on CSC, the U.S.-based IT-services giant finished 2007 on an equally strong note, securing three of the 10 largest outsourcing deals announced in December.
The U.S. Defense Information Systems Agency (DISA) gave CSC their biggest win by selecting it to design and support several networks under a five-year, $613 million deal. CSC will also manage the voice and network services for the Defense Switched Network and the Defense Red Switch Network, and provide support for related systems at DISA.
In the same week, CSC also revealed it had been awarded a $113 million deal to provide supercomputing systems integration to the National Aeronautics and Space Administration (NASA), and extended its relationship with Sun Microsystems for five more years. Earlier in Dec. ’07, insurance company TrygVesta awarded CSC an infrastructure management deal in Denmark.
Many of the other global IT-services giants also secured big deals in the final days of 2007. Leading the way is the $715 million contract by pharmaceutical company Bristol-Myers Squibb (BMS) that has been given to EDS to provide infrastructure services and manage data-center operations, in addition to providing helpdesk and field support. The contract initially covers BMS’ American and Asia-Pacific operations but includes provisions to expand the scope to Europe, the Middle East and Africa.
December’s biggest European deal was another example of the increasing popularity of multisourcing strategies. Dutch insurer Achmea awarded three outsourcing deals worth a combined $609 million to Atos Origin, Getronics and KPN. The largest contract went to KPN, which will provide all of Achmea’s communications services, covering landlines, mobile devices, and data networks, under an agreement worth approximately $221 million. Atos Origin will provide data-center services under a deal worth $214 million.
Getronics, which was acquired by KPN earlier this year, will manage Achmea’s desktop infrastructure for its Dutch operations. This part of the project, which covers some 20,000 employees, is valued at about $177 million.
|
The Ten Largest IT Services Deals in Dec. ’07
|
| Customer |
Provider |
Engagement(s) |
Region |
Value($ mn) |
Duration
(in yrs)
|
| Bristol-Myers Squibb |
EDS |
Infrastructure mgmt. |
Global |
715 |
8 |
| Defense Info. Systems Network |
CSC |
Network mgmt. |
U.S.A. |
613 |
5 |
| Achmea |
Atos Origin/ Getronics/ KPN |
Infrastructure mgmt., network mgmt. |
Netherlands |
609 |
5 |
| U.S. Army |
Northrop Grumman |
Systems integration |
U.S.A. |
600 |
8 |
| Missouri Medicaid |
Infocrossing |
Application mgmt., infrastructure mgmt. |
U.S.A. |
407 |
10 |
| National Australia Bank |
IBM Global Services |
Desktop mgmt. IT support |
Australia |
260 |
3
|
| TrygVesta |
CSC |
Infrastructure mgmt. |
Denmark |
192 |
5 |
| Idaho Dept of Health and Welfare |
Unisys |
Application development and support, systems integration |
U.S.A. |
168 |
10
|
| NASA |
CSC |
Systems integration |
U.S.A. |
113 |
5 |
| U.S. Army |
NCI |
Maintenance/support |
U.S.A. |
97 |
3 |
Datamonitor’s deal tracker logs every publicly disclosed consulting, systems integration & outsourcing deal,
with a minimum value of $1 million |
