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3/26/2003
07:34 AM
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CSC May Get United Technologies' European Contract, Inks Deal With Government Of Canada

Under the proposed agreement, CSC would manage part of the military and defense contractor's computer operations in Europe.

United Technologies Corp. is close to signing a significant computer services deal with Computer Sciences Corp., according to officials at United Technologies. Under the proposed agreement, CSC would manage a portion of the military and defense contractor's computer operations in Europe.

United Technologies' CIO John Doucette says the deal, if signed, would be similar in scope and structure to a November agreement under which the company farmed out to CSC the management of 10,000 PCs and 400 servers used by its operations in Asia and the South Pacific.

"We're in the process of looking at a deal with CSC in Europe that would be of about a similar size," Doucette said in an interview. United Technologies' Asia-Pacific deal with CSC, an expansion of an existing contract, is worth about $143 million and runs through 2014.

The deal would be welcome news for CSC, which recently lost its position as J.P. Morgan Chase's primary IT services contractor to IBM Global Services. However, CSC is enjoying good news on other fronts. In addition to the possible European deal with United Technologies, the company said Tuesday that it had signed a $38 million, seven-year services contract with the government of Canada. CSC will help Canada's Department of National Defense move its computer networks to Microsoft's Windows 2000 operating system and provide a range of other integration and IT-security services.

CSC is the nation's third-largest computer-services provider, trailing IBM and EDS. CSC officials weren't immediately available for comment.

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