CSC and Royal Mail in £1.5 billion IT deal

Computer Sciences Corporation announced today that it has signed a ten-year information technology-outsourcing contract worth £1.5 billion with the UK’s Royal Mail Group.

Computer Sciences Corporation (CSC) announced today that it has signed a ten-year information technology outsourcing contract worth £1.5 billion with the UK’s Royal Mail Group.

Under the terms of the agreement, Royal Mail will outsource its data centres, data networks and more than 600 business application systems to the CSC-led Prism alliance, which includes BT and Xansa.

Approximately 1,735 employees, mostly IT professionals employed by Royal Mail, will transfer to CSC, which is based in El Segundo, California; Xansa and BT under terms and conditions defined under UK employee transfer regulations (TUPE).

Nearly 85 per cent, or approximately 1,470 of these employees, will transfer to CSC, following approval of the transaction by the European Commission.

‘Royal Mail’s selection of CSC for one of the largest IT outsourcing contracts ever signed in the UK underscores CSC’s experience and our history of providing operational and financial results for clients in managing highly complex, large-scale outsourcing programs,’ said CSC Chairman and Chief Executive Officer Van B. Honeycutt.

‘This is a great deal for Royal Mail and a great deal for our people,’ said Royal Mail Chief Executive Adam Crozier. ‘It is a vital component in our renewal plans in terms of reducing costs and giving us the information technology services that we need to make Royal Mail a great company.

‘The CSC-led Prism Alliance is a powerful combination of three world-class companies. In one leap we will have access to the levels of advanced technology we need to compete successfully and improve our services to customers.’

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