Banking on its innovative solutions,
Computer Sciences Corporation
) intends to expand further in the data center market. The
company recently announced that it has won a contract from electric
transmission and power generation company Alstom (ALO).
As per the contract, CSC will provide its information technology
(IT) infrastructure managed services solution to Alstom for a
period of five years.
The company has taken on the responsibility of streamlining
Alstom's global datacenter operations to increase innovation,
improve the quality of service and reduce operational costs.
Computer Sciences is expected to deploy its BizCloud and Storage as
Service infrastructure solutions to provide Alstom with enhanced
Computer Sciences continues to explore its cloud-based services,
as it uses BizCloud, which combines the privacy, security and
control of a private cloud, and has the capacity to efficiently
manage the workload of the company.
CSC has a large project pipeline and continues to augment it at
regular intervals. The most recent one is a contract pertaining to
information technology (IT) services solutions from the National
Institute of Health Information Technology Acquisition and
Assessment Center (NITAAC).
The company is also going through a restructuring process that
should provide better visibility to its stakeholders. The company
is in the process of restructuring its operating model to speed up
the detection of troubled contracts and address the issues
The company is considering changes in management, restructuring
management remuneration scheme, and evaluating some other
contracts. The divestiture of non-core assets is another focus
area. Moreover, the company is also working on putting together a
new leadership team.
While restructuring, cost-saving and new contract wins are some
of the ways in which the company is trying to increase its business
volume, the delay in new order renewal from the government vertical
and deterioration in European economic activity are some of the
factors that concern us.
Intense competition in the IT and cloud computing space from
both small and big players such as
CSC's large European exposure, strained federal budgets and delay
in government approval are other factors weighing on the stock in
the short term.
Currently, CSC holds a Zacks #5 Rank (implying a short-term
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