BAE Systems signs $1.9bn outsourcing deal

BAE Systems has signed a £1.9bn outsourcing deal with CSC.

The new five-year contract replaces an existing agreement that would otherwise expire in October 2006.

Under the new agreement, CSC will continue to manage a full range of IT operations for a number of units at the defence and aerospace giant. These include mainframe and midrange computers; servers and desktops; local and wide area networking; helpdesks; applications development and support; and procurement services.

BAE Systems programme director Steve Barrett said in a statement: "Since 1994, BAE Systems and CSC have worked together to respond to technology changes in the IT arena. This new next-generation outsourcing contract delivers flexibility, improved service and savings that BAE Systems businesses need."

The relationship between the companies began in 1994 with a 10-year, $1.5bn IT outsourcing contract in the UK. At that time it was one of the largest outsourcing contracts in Europe.

Through the existing agreement, CSC provides IT services in support of 13 BAE Systems businesses and joint ventures operating in more than 117 locations in the UK and North America.