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CSC Wins 10-Year Contract to Manage Maybank Computers

The $342-million deal with Malaysia's largest banking group boosts the company's presence in the Pacific Rim.

August 29, 2003|Terril Yue Jones | Times Staff Writer

Computer Sciences Corp. said Thursday that it had reached a 10-year, $342-million deal to manage the computer systems of Malaysia's largest banking group.

El Segundo-based CSC will take over responsibility for the mainframes, desktop PCs, help desk, network infrastructure and other computer services of Malayan Banking in Malaysia and Singapore. Under the contract, about 320 employees of the bank, also known as Maybank, will transfer to CSC and its affiliates.

"It's a mid-size deal for CSC," said company spokesman Mike Dickerson. But he said it was "significant because it further strengthens our presence in the Pacific Rim."

In a statement, Maybank Chief Executive Datuk Amirsham A Aziz said the outsourcing agreement would "allow us to focus more of our energy and resources into our core business."

As they seek more contracts outside the U.S., CSC and its main rivals -- IBM Corp. and Electronic Data Systems Corp. -- are finding it increasingly difficult to compete with technology outsourcing firms based overseas, said Bob Di Giovanni, an attorney who represents clients seeking computer management services.

"The competition is quite hot and heavy," said Di Giovanni, a partner in the Los Angeles office of law firm Shaw Pittman.

CSC manages computer systems for such clients as the U.S. Defense Department, Nortel Networks Corp. and Britain's Royal Mail.

This month alone, the company has announced new contracts with Boeing Corp., the U.S. Navy and several law enforcement clients.

CSC reported this month that it earned $92.3 million, or 49 cents a share, on revenue of $3.55 billion in its fiscal first quarter, which ended July 4.

CSC shares fell 14 cents Thursday to close at $41.75 on the New York Stock Exchange.

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