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January 12, 2011
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After the recent acquisition of CenTauri Solutions LLC. by the technology major Computer Sciences Corp. (CSC), the pace of deal wins has accelerated. CSC has recently signed a 10-year agreement with a diversified financial services company to license its Wealth Management Accelerator.
The new product is a browser-based life insurance and annuity administration system that allows carriers to rapidly introduce wealth management features and streamline back office administration processes.
A few days back, the company inked another multi-year licensing agreement with a leading U.S. insurance carrier, nationally ranked by A.M. Best Company, a credit rating firm focusing on the banking and insurance sectors.
Apart from this, the U.S. Department of Health and Human Services (HHS) has awarded CSC an Information Technology Infrastructure Operations indefinite-delivery/indefinite-quantity contract, which has a three-year base period with four incremental one-year options. Under the terms of the contract, CSC will compete to provide Web services, including Internet and remote access to the HHS server, as well as hardware and software services such as network file sharing, data backup and restoring, help desk and desk side support, and network administration.
The company is constantly growing through acquisitions that enhance its services portfolio and expand its operations in new markets. It has a steady flow of new business, especially in the government vertical and is financially sound. While things look good for CSC, we are a tad apprehensive about intense competition in IT and cloud computing spaces from both big and small players like Hewlett Packard Company (HPQ) and Accenture Inc. (ACN).
These continuous deal wins are expected to strengthen the revenue base of the company in the coming quarters. We believe CSC’s aggressive marketing, the high quality of technology enabled solutions and customer satisfactions are doing wonders for the company.
Currently, CSC has a short-term Hold rating (Zacks #3 Rank).
Read the full analyst report on "CSC"
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