Computer Sciences Corporation
) recently announced that it has won a contract extension from
Switzerland-based Zurich Insurance Group Ltd. According to the
contract, the financial details of which were kept confidential,
Computer Sciences will continue to provide its information
technology application services to Zurich for an additional 7-year
period. Apart from this, the parties to the contract will be
allowed to extend the term for another 3 years, if required.
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Zurich Insurance Group happens to be one of the largest insurers of
Switzerland. The company provides general insurance, life insurance
and farmer insurance, globally. To manage its worldwide insurance
operations the company has had to adopt efficient software
solutions. Computer Sciences' expertise in providing various
insurance solutions helped Zurich to select its insurance suite.
Computer Sciences and Zurich have been doing business since 2004.
Under this extended agreement, which will be effective from January
2013, Computer Sciences will support Zurich in expanding its
business operations in Switzerland, Canada, Germany, Italy, the
U.K. and the U.S.
Insurance plays a vital role in providing a sense of security to
people. With economic recovery underway, people are again looking
to put their money into innovative life and annuity products in
order to secure their incomes and lives. Insurance carriers are
trying to tap this demand through their new life and annuity
policies. Computer Sciences has been prudent in unveiling new
products and solutions, which have helped insurance carriers in
Computer Sciences has been seeing a series of insurance deal wins,
indicative of the efficacy and popularity of its products. In
August, Aviva India, an arm of U.K.-based Aviva Group engaged in
the business of life insurance, opted for Computer Sciences'
Integral insurance suite, to boost its performance across branches.
Though intense competition in the IT and cloud computing space from
both small and big players such as
), European exposure and strained federal budgets are concerns, the
first quarter earnings beat and resolution of the NHS deal issue
makes us bullish on the shares.
Currently, Computer Sciences Corporation holds a Zacks #2 Rank
(implying a short-term Buy rating).