Computer Sciences Corp says that a $300m outsourcing contract for General Electric Co could be worth five to ten times as much over 10 years. The deal, first announced last month (CI No 3,780), covers GE’s European operations, but CSC says that it might be expanded to include the Asia-Pacific region, which would double the value of the deal. CSC Europe business development executive Ian Williamson calls Japan GE’s key market and says the Asia-Pacific business is a larger opportunity for CSC.
CSC will manage the helpdesk, back-up and IBM mainframe and mid-range data processing for GE’s finance arm, GE Capital IT. The El Segundo, California firm will provide the same service for any GE acquisitions, enabling the industrial combine to integrate new business units swiftly. GE Capital is currently growing at a rate of 30 to 40 acquisitions a year, according to Williamson, which should increase the value of the services contract substantially from a starting-point of $30m per year.
