Computer Sciences Corporation
(
CSC
) recently announced that it has won a contract extension from
Bermuda-based Northstar Financial Services Ltd. According to the
contract, the financial details of which were kept confidential,
Computer Sciences will continue to provide its business process
outsourcing (BPO) services to Northstar for an additional 5-year
period.
Northstar is a renowned financial planning solutions provider
for non-U.S. citizens. The company offers a host of insurance,
investment and annuity-based products targeting the financial
security of its specific client base. The company currently manages
$500 million worth of assets in Bermuda.
Computer Sciences' BPO services have enabled Northstar to
efficiently float new investment products and also take care of its
existing customers. Since the increased efficiency translated to
lower operating expenses, Northstar was encouraged to go for an
extension.
Last week, Computer Sciences won two other contracts. The
company's Enterprise Scheduling solution (a healthcare suite) was
chosen by a Singapore-based multi-disciplinary hospital, Tan Tock
Seng Hospital. Also, the Federal Aviation Administration agency of
the U.S. Department of Transportation opted for Computer Sciences'
cloud-based solution to optimize its Enterprise Messaging
System.
The deal value was $91.0 million. Apart from this, Computer
Sciences also 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. Moreover, the company has contracts from
different industry verticals. 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 as
Accenture plc
(
ACN
) and
Hewlett-Packard Company
(
HPQ
), its European exposure and strained federal budgets have prompted
our bearish outlook on the stock.
Currently, CSC holds a Zacks #4 Rank (implying a short-term Sell
rating).
ACCENTURE PLC (ACN): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research