CSC (Computer Science Corporation)
Computer Sciences Corporation (CSC) is a renowned American multinational company founded in 1959 that deals in systems integration and related information technology services. Based in Falls Church, Virginia, USA, the company offers a range of services including IT systems management, data center management, application development, communications and networking development, as well as business consulting. In addition, the company offers business process outsourcing (BPO) services in such fields as customer relationship management (CRM), human resources, as well as billing and payment processing (Mohapatra, 2013).
CSC has also tapped into such emerging services as cyber security protection and cloud computing, Software as a Service (SaaS), Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Business Process as a Service (BPaaS), Cyber Security Managed Services along with emerging associated service delivery model. In addition, CSC does licensing of software systems such as SaaS offerings for healthcare, financial services and other industry-specific markets besides providing a vast range of end-to-end business solutions for government and large commercial clients (Akintoye, 2012). CSC provides its services through three broad service sectors or lines: the North American Public Sector, Business Solutions and Services, and Managed Services Sector. As a key government and defense contractor, CSC gets in excess of its revenues from the US federal agencies via its public sector division. The company makes more than 60 percent of its entire sales in the US and its clientele base stretches in 90 countries (Pratt & Kulsrud, 2012).
CSC needs to undertake a capital project that entails deployment of a new portfolio of network-enabled service offering in order to meet increasing competition and ultimately realize increased revenue together with improved value creation for customers. Traditionally, CSC has concentrated on offering customized solutions as opposed to building centralized, scalable offerings (Mohapatra, 2013). This has meant that the company’s outsourcing along with system integration opportunities have been shrinking considerably, with a growing segment of customer perceiving the services as undifferentiated from those offered by competitors .
Repositioning the organization into focusing on centralized, network-enable services requires considerable organizational shift while developing new product management capabilities together with creating innovative new offerings would call for significant investment and funding of the project to a tune of £2.5 million, of which CSC will provide £250,000. A greater share of the amount would go into CSC’s technology investments. Funding is also needed for using the services of an external consulting firm that would quantify the size of the target market besides advising on specific areas that CSC needs to address urgently as well as precise steps of delivering each solution (Mohapatra, 2013). In the end, CSC needs to be able to provide a more intelligent network infrastructure to customers, able to identify and manage traffic on a granular, per application basis. A cross-functional effort in developing am application-aware networking portfolio of services that involves all CSC stakeholders would have to be undertaken. CSC expects to return double the money invested in the project by last quarter of second year.
The Global Infrastructure Services (GIS) division, CSC’s business unit wanting to undertake the capital project, faces a number of challenges especially in seeking funding. It would prove challenging to convince sponsors to undertake such a high value project in light of CSC’s current difficulty in effectively managing its cost structure together with issues of organizational and operating-model adjustment. CSC also faces significant continued budget uncertainty following recent contract write-offs in both the UK and the U.S. resulting in major impairment and restructuring charges. The project faces leadership capability issues, accountability and governance challenges that may hinder attainment of improved performance, delivery of greater value to shareholders and positioning of CSC for the future. Innovative and charismatic leadership is essential to enable CSC innovate, compete and substantially improve its profitability. This is necessary considering that the company underperformed significantly on FY12.
Mohapatra, S. (2013). Business Process Reengineering. New Mexico: Springer.
Pratt, W. J., & Kulsrud, N., W. (2012). Individual Taxation 2013 (with H&r Block @ Home CD-ROM, CPA Excel 1-Semester Printed Access Card). Connecticut: Cengage Learning.
Akintoye, A. (2012). Construction Innovation and Process Improvement. New Jersey: John Wiley & Sons.