Menu
CSC to split in two, spin off US public sector work

CSC to split in two, spin off US public sector work

Computer Sciences Corporation, founded in 1959, is becoming two companies

IT services vendor Computer Sciences Corp. plans to separate its US$4.1 billion U.S. public sector business to form a new company, it said Tuesday.

The move is the latest step in a restructuring that began three years ago and will see CSC's mission divided between U.S. government clients and all others.

The U.S. public sector business, expected to be operational by October, will target federal, state and defense customers and employ 14,000 people. That business generated $4.1 billion in revenue last year.

CSC's remaining 51,000 employees will focus on commercial customers, and public sector organizations outside the U.S. That business recorded revenue of $8.1 billion last year.

The split will happen at about the same time as that of another aging tech giant, Hewlett-Packard, which is also breaking in two. CSC was founded in 1959, while HP was founded 20 years earlier.

HP is cleaving its PC and printing divisions away from its enterprise hardware and service businesses, an effort to stimulate growth and make its shareholders happier.

While the two CSC businesses are very different in size, they're about evenly split when it comes to profitability. In the fiscal year just ended, CSC's public sector work in North America earned it operating income of $591 million, versus $567 million for the rest of its business.

CSC said it's making the split because government clients are looking to work with companies that have specific experience in government work. The new businesses will be called CSC Global Commercial and CSC US Public Sector.

In late 2014, CSC said it would pay US$190 million to settle a case brought by the U.S. Securities and Exchange Commission over four-year-old charges that it violated U.S. antifraud, reporting, and books-and-records laws. At issue was the way it accounted for work in Australia, Denmark and the U.K.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesservicescscrestructuring

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments