The technology consulting and business process outsourcing company, Computer Science Corporation (CSC) is securing order extensions at regular intervals. Latest in this series is a 10 year order extension, secured by the company’s Business Process Outsourcing (BPO) division at one of the largest reinsurance companies, Swiss Re.
Under the order extension, CSC will continue to support Swiss Re’s Admin Re business. The two companies have jointly developed strategies, which are expected to drive greater efficiencies in administration, improve the customer service procedure and enhance the system alignment procedure. The whole enhancement process will incorporate CSC’s CyberLife software, Customer Service Accelerator and Claims Management Accelerator in this system. This marks the continuation of the 15 year long relation between CSC and Swiss Re.
This apart, the company has also entered into an agreement with the Australian wealth management company AMP, whereby it will provide one of its cloud-based services to the company. AMP, a leading wealth management service provider in Australia and New Zealand , supplies retail and corporate superannuation as well as retirement income products.
As per this new agreement, CSC will provide AMP with its Collaborative Online Services (COS), which is basically its cloud-based email and collaboration solution. AMP is expected to use the solution to form a new cloud-based service for its Australian customers. CSC will host the COS locally in an Australian data center, which works on the prevailing virtual computing platform supported by technologies from VMware Inc. (VMW), Cisco Systems Inc. (CSCO) and EMC Corp. (EMC).
We are cautiously optimistic about the company and expect this growth to continue, backed by strong business awards, although the current macroeconomic weakness in Europe may rationalize demand to a certain extent.
On the other hand we are a tad apprehensive about certain issues affecting CSC, as the company has a limited number of indigenous products which may result in some margin pressure, as a number of large and small competitors are entering the IT and professional services market.
This apart, the company’s U.S. federal government customers are slowly restructuring their spending priorities, whereby budgets are being reallocated from IT to other priority zones. These factors may limit growth prospects of the company. However, we think that the steady growth in bookings is rather encouraging and will provide CSC an edge over others.
We have a Neutral rating on CSC, with a short term Zacks rank of #3 (Hold).
Under the order extension, CSC will continue to support Swiss Re’s Admin Re business. The two companies have jointly developed strategies, which are expected to drive greater efficiencies in administration, improve the customer service procedure and enhance the system alignment procedure. The whole enhancement process will incorporate CSC’s CyberLife software, Customer Service Accelerator and Claims Management Accelerator in this system. This marks the continuation of the 15 year long relation between CSC and Swiss Re.
This apart, the company has also entered into an agreement with the Australian wealth management company AMP, whereby it will provide one of its cloud-based services to the company. AMP, a leading wealth management service provider in Australia and New Zealand , supplies retail and corporate superannuation as well as retirement income products.
As per this new agreement, CSC will provide AMP with its Collaborative Online Services (COS), which is basically its cloud-based email and collaboration solution. AMP is expected to use the solution to form a new cloud-based service for its Australian customers. CSC will host the COS locally in an Australian data center, which works on the prevailing virtual computing platform supported by technologies from VMware Inc. (VMW), Cisco Systems Inc. (CSCO) and EMC Corp. (EMC).
We are cautiously optimistic about the company and expect this growth to continue, backed by strong business awards, although the current macroeconomic weakness in Europe may rationalize demand to a certain extent.
On the other hand we are a tad apprehensive about certain issues affecting CSC, as the company has a limited number of indigenous products which may result in some margin pressure, as a number of large and small competitors are entering the IT and professional services market.
This apart, the company’s U.S. federal government customers are slowly restructuring their spending priorities, whereby budgets are being reallocated from IT to other priority zones. These factors may limit growth prospects of the company. However, we think that the steady growth in bookings is rather encouraging and will provide CSC an edge over others.
We have a Neutral rating on CSC, with a short term Zacks rank of #3 (Hold).
COMP SCIENCE (CSC): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis Report
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