|
if CSC wants to expand it inventory of banking software as well as gaining access to some of the world's top banks. They should consider buying MTCI (Management technologies)..this financially troubled company is reported up for sale...it's very cheap.
EL SEGUNDO, Calif.--(BUSINESS WIRE)--May 1, 1997--
Strength as flexible, innovative partner a plus in helping an
industry transform
Computer Sciences Corp. (NYSE:CSC) Thursday announced the launch of a new business group to support the global financial services marketplace.
It combines CSC's total capabilities across the insurance, banking and investment industries.
The new Financial Services Group is headed by Thomas R. Madison as president. Madison formerly headed CSC's Integrated Business Services unit, which markets the company's large-scale outsourcing offerings.
"With the launch of this new unit, we're committed to becoming the world's leading business and technology partner to the financial services industry," said Van B. Honeycutt, CSC's chairman and chief executive officer. "We have a single-minded goal: to help clients achieve major breakthroughs in their operating and financial performance."
What makes CSC's approach to financial services unique, added Honeycutt, is its assembling of the full range of services -- consulting, systems integration, applications software and outsourcing -- into a single global business unit. Insurance companies, banks and investment firms alike are rushing to expand beyond their traditional lines of business as regulatory barriers fall, non-traditional competition grows and consumers seek one-stop solutions to all their financial services needs.
CSC's approach -- giving clients single-point access to its full range of products and technology and business services -- fits well with the needs of these firms, which are looking to new offerings (everything from selling insurance over the Internet to branching into credit card products), along with the new technologies needed to support them.
CSC is uniquely equipped to serve this marketplace, Madison noted, because of its reputation for flexibility and its strength in establishing innovative partnerships.
"We can advise clients on business strategy; then we can execute that strategy, along with providing technology support; and we can take responsibility for delivering business results," Madison said. "We can also help clients that want to enter new sectors of the market by becoming their technology and business partner. Or we can speed the process of a merger. We can also install a specific product, making sure it's integrated with a client's other systems and compliant with Year 2000 requirements."
The worldwide market CSC is targeting is projected to be about $100 billion in I/T services alone for today's insurance, banking and finance companies. Adding business services such as management consulting and business process outsourcing could triple that potential market.
Combined revenues from existing CSC lines of business and units that are involved in the financial services area are expected to be in excess of $1.5 billion in fiscal 1998. The group will support more than 1,000 clients in 50 countries with an employee base of about 7,500 professionals. In addition, the larger CSC organization will provide supplementary consulting and technical skills around issues ranging from business transformation to data security.
Units within CSC that will become part of the group include CSC Continuum and the former Hogan Systems, which provide software and services to 70 percent of the top 50 banks and insurance companies in the U.S. Worldwide, they support 130 of the largest banks across 20 countries; and nearly 50 percent of Fortune's global 500 financial services companies.
"These two firms alone give us the world's largest inventory of banking and insurance applications software," said Madison. "We're determined to keep that lead."
Just how today's financial services firms will benefit from CSC's approach to technology and business solutions is reflected in the stories of three very different CSC clients:
-- A leading U.S. insurance firm wants to trim I/T costs; keep pace with fast-changing technologies; and use its back-office software processing capabilities to launch a new business that can support other firms seeking to cut administrative costs. By combining its consulting, outsourcing, systems integration and insurance applications software expertise, CSC's Financial Services Group will help the company upgrade and streamline its I/T operations. The company will also team with Financial Services Group to launch a new business process outsourcing firm to help other U.S. life insurance firms, which collectively spend some $40 billion annually in administrative costs, trim those costs in half.
-- A Mexico City bank is strategically positioning itself to offer every financial transaction its clients might need: everything from life insurance to property and casualty products, credit card processing, investment transactions -- even real estate and car dealership services. CSC Continuum and Hogan Systems have supported each phase of growth. Now, Financial Services Group gives the bank a single point of contact for the entire breadth of CSC's services and products.
-- A Dutch financial services firm is targeting new Asian and Eastern European markets for its life insurance products, enlisting CSC to provide consulting and applications products and support. As the company continues to look at new growth opportunities, such as property and casualty or investment products, the new Financial Services Group is well-positioned to support its needs.
CSC had $5.4 billion in revenues for the 12 months ended Dec. 27, 1996. With headquarters in El Segundo, Calif., CSC has nearly 44,000 employees in more than 600 offices worldwide, providing clients with a wide range of professional services including management consulting, business reengineering, information systems consulting and integration, and outsourcing.
Background on Thomas R. Madison
Tom Madison is a corporate vice president and group president of CSC's global Financial Services Group. He formerly headed CSC's Integrated Business Services unit, which is the focal point for bringing CSC's integrated services to large, complex opportunities with commercial clients. During the two years he led that organization, the company's revenue from outsourcing nearly doubled from $1.2 billion in 1995 to $2.2 billion in 1997. Prior to joining CSC in 1993, Madison was the managing director for Gemini Consulting's international consulting firm. He also spent 15 years with IBM, where he held a series of executive positions, including industry director for financial services.
CONTACT:
Computer Sciences Corp.
Bruce Plowman, 310/615-0311
Mary Rhodes, 512/338-7379
|
