CSC Wins Airline Outsourcing Deal

Scandinavian airline operator SAS Group is turning over the operation of its IT infrastructure to Computer Sciences Corp. under an outsourcing deal announced Thursday worth in excess of $1 billion.

Under the contract, CSC will provide the airline with technology consulting, systems integration, and application development and maintenance services. The contract runs for five years, with a two-year extension option and a pair of one-year extension options. CSC values the contract at $1.5 billion if SAS exercises all of the options. As part of the deal, CSC will acquire SAS Group's technology subsidiary Scandinavian IT Group, which employs about 1,200 IT workers. The agreement becomes effective in February, pending regulatory approval.