Computer Sciences Corporation
) recently announced that it will be offering one of its healthcare
suites to a Singapore-based multi-disciplinary hospital, Tan Tock
Seng Hospital ('TTSH'). Tan Tock Seng Hospital is well equipped
with 27 clinical departments, 15 specialist centers, 1500 beds and
a staff of 6000. Financial details of the deal were kept
Under the contract, Computer Sciences will offer its Enterprise
Scheduling Solution (which it inherited from its iSoft Group
acquisition in April 2011) to TTSH. The solution helps hospitals
deliver efficient and prompt services by automating the process of
bookings and referrals (transfers or recommendations) efficiently
across hospitals and healthcare agencies.
Bookings of hospital beds or appointments and referrals to other
departments or hospitals are complex processes. Multi-facility
hospitals face huge pressure in managing various departments and
other issues. This causes further delays in booking and referral
activities. A work-load optimizing tool such as Computer Sciences'
Enterprise Scheduling Solution could be of immense help in such a
The product has been deployed in more than 100 hospitals across
Europe. With the TTSH win, Computer Sciences has now stepped into
Asia. We think that given its track record, the solution should see
considerable success in Asia as well.
Apart from this, Computer Sciences won a multi-year contract
extension from Safety Insurance Group for an undisclosed sum.
Deal wins are catalysts for any company and Computer Sciences
has no dearth of them. But the growing uncertainty regarding the
U.K. National Health Service contract, intense competition in the
IT and cloud computing space from both small and big players such
), its European exposure and strained federal budgets have prompted
our bearish outlook on the stock.
Currently, CSC holds a Zacks #5 Rank (implying a short-term
Strong Sell rating).
(We are reissuing this article to correct certain problems.
The original article, issued June 8, 2012, should no longer be
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