Computer Sciences Corporation Explained

Computer Sciences Corporation
Traded As:	NYSE CSC
Founder:	Roy Nutt Fletcher R. Jones
Fate:	Merged with HP Enterprise Services; formed DXC Technology
Successor:	DXC Technology
Area Served:	Worldwide
Key People:	John Michael Lawrie ^[1]
Services:	IT, business consulting and outsourcing services
Subsid:	Computer Sciences Raytheon, Xchanging
Location City:	Tysons, Virginia

Computer Sciences Corporation (CSC) was an American multinational corporation that provided information technology (IT) services and professional services. On April 3, 2017, it merged with the Enterprise Services line of business of HP Enterprise (formerly Electronic Data Systems) to create DXC Technology.^{[2] [3]}

History

CSC was founded in April 1959 in Los Angeles, California, by Roy Nutt and Fletcher Jones.^[4] CSC initially provided programming tools such as assembler and compiler software.^[5]

In the 1960s, CSC provided software programming services to major computer manufacturers like IBM and Honeywell and secured their first contracts for the U.S. public sector with NASA (among others).

By 1963, CSC became the largest software company in the United States and the first software company to be listed on the American Stock Exchange.^[6] By the end of 1968, CSC was listed on the New York Stock Exchange and had operations in Canada, India, the United Kingdom, Germany, Spain, Italy, Brazil, and the Netherlands.

In 1967, CSC set up Computicket Corp. to compete in the fledgling electronic ticket market competing with Ticketron but lost $13 million and discontinued the service in 1970.^[7]

In the 1970s and 1980s, CSC expanded globally winning large contracts for the finance and defense industries and through acquisitions in Europe and Australia.

In 2000, CSC founded a joint-venture called Innovative Banking Solutions AG^[8] in Wiesbaden, Germany, to market their newly developed SAP solution for mortgage companies.

Since its beginnings in 1959, company headquarters had been in California. On March 29, 2008, the corporate headquarters of the company were relocated from El Segundo, California, to Falls Church, Virginia.^{[9] [10]} CSC had been a Fortune 500 Company since 1995,^[11] coming in at 162 in the 2012 rankings.^[12]

In fiscal 2013, CSC acquired ServiceMesh (cloud management) for $282M, Infochimps (a big data platform) for $27M, 42Six (analytics for national intelligence) for $35 million, iSOFT (application solutions) for cash and debt, and AppLabs (application testing) for $171M.^[13]

In May 2015, CSC announced plans to split the public sector business from its commercial and international business.^[14] In August, it was announced that CSC's Government Service business would merge with SRA International to form a new company — CSRA—at the end of November 2015.^[15]

In July 2015, CSC and HCL Technologies announced the signing of a joint venture agreement to form a banking software and services company, Celeriti FinTech.^{[16] [17]}

In September 2015, CSC closed the acquisition of Fixnetix, a provider of front-office managed trading solutions in capital markets.^[18] CSC also acquired Fruition Partners, a provider of technology-enabled solutions for the service-management sector during the month.^[19]

In November 2015, CSC agreed to acquire the shares of UXC, an IT services company based in Australia in a deal valued at .^[20]

In December 2015, business technology and services provider, Xchanging, agreed to be purchased by CSC.^[21]

In February 2016, CSC announced it was moving its headquarters to Tysons in Fairfax County, Virginia.^[22]

On April 3, 2017, it merged with HPE Enterprise Services to create DXC Technology.^{[2] [3]}

Business

CSC once ranked among the leading IT service providers in the world.^{[23] [24]} Geographically, CSC had major operations throughout North America, Europe, Asia, and Australia.

The company operated in three broad service lines or sectors until the 2015 divestment of NPS, its public sector:

• North American Public Sector (NPS): Since 1961, CSC had been one of the major IT service providers for the U.S. federal government. CSC provided services to the United States Department of Defense,^[25] law enforcement and intelligence agencies (FBI,^[26] CIA, Homeland Security), aeronautics and aerospace agencies (NASA). In 2012, U.S. federal contracts accounted for 36% of CSC total revenue.^[27]
  • Managed Services Business Solutions and Services

The company made several acquisitions, including DynCorp in 2003^{[28] [29]} and Covansys Corporation in 2007.^[30]

Awards and recognition

• In September 2012, CSC was ranked 8th in Software Magazine’s Software 500 ranking of the world’s largest software and service providers.^[31]

Criticism

• In June 2013, Margaret Hodge, chair of the Public Accounts Committee, a Select committee of the British House of Commons, described CSC as a "rotten company providing a hopeless system" with reference to their multibillion-pound contract to deliver the National Programme for IT Lorenzo contract.
• In December 2011, the non-partisan organization Public Campaign criticized CSC for spending on lobbying and not paying any taxes during 2008–10, instead getting in tax rebates, despite making a profit of .^[32]
• In February 2011, the U.S. Securities and Exchange Commission (SEC) launched a fraud investigation into CSC's accounting practices in Denmark and Australian business. CSC's CFO Mike Mancuso confirmed that accounting errors and intentional misconduct by certain personnel in Australia prompted SEC regulators to turn their gaze to Australia. Mancuso also stated that the alleged misconduct includes in both intentional accounting irregularities and unintentional accounting errors.^[33] The SEC accused the former CEO Mike Laphen of fraud and clawed back $4,35 million^[34]
• The company was accused of breaching human rights by arranging several illegal rendition flights for the CIA between 2003 and 2006, which also led to criticism of shareholders of the company, including the governments of Norway and Britain.^{[35] [36]}
• The company engaged in a number of activities that resulted in legal actions against it. These are:
  1. Its so-called WorldBridge Service (Visa Services), which processed and issued millions of visa applications to enter Britain, did not involve British authorities.
  2. In 1998, CSC was the prime contractor hired by the Internal Revenue Service to modernize its tax-filing system. They told the IRS it would meet a January 2006 deadline, but failed to do so, leaving the IRS with no system capable of detecting fraud. Its failure to meet the delivery deadline for developing an automated refund fraud detection system cost the IRS between and .

See also

• VP/MS (Visual Product Modeling System), a modeling language and product lifecycle management tool by CSC
• Top 100 US Federal Contractors
• CSRA Inc., formed by a merger of CSC's North American Public Sector and SRA International
• Team CSC and other names 2003-2010. Professional cycling sponsorship under team owner Bjarne Riis.

External links

• • Computer Sciences Corporation SEC Filings

Notes and References

1. Web site: Management and Board of Directors. Computer Sciences Corporation. 2 July 2015.
2. Web site: CSC Announces Merger with Enterprise Services Segment of Hewlett Packard Enterprise to create a Global IT Services Leader . Press release . May 24, 2016 . November 4, 2016 .
3. Web site: New York Stock Exchange DXC Technology. dead . https://web.archive.org/web/20170406022954/https://www.nyse.com/network/article/nyse-dxc . April 6, 2017 .
4. Web site: Our History . CSC web site . June 1, 2010 .
5. Web site: CSC, History. fundinguniverse.com.
6. Web site: History in the Computing Curriculum . November 21, 2014.
7. Variety. April 8, 1970. 117. Arneel. Gene. Computicket Folds With $13-Mil Loss, But Ticketron Still Punching Away.
8. iBS – Smart Applications for Banking on SAP. 2000|https://www.ibs-banking.com/en/company.html
9. Web site: Computer Sciences Corporation, Form 10-Q, Quarterly Report, Filing Date Feb 6, 2008 . secdatabase.com . Mar 29, 2013.
10. Web site: Computer Sciences Corporation, Form 8-K, Current Report, Filing Date Mar 31, 2008 . secdatabase.com . Mar 29, 2013.
11. News: FORTUNE 500: Companies by year C . March 28, 2011 . CNN.
12. Web site: Fortune 500 - Fortune. Fortune. 2 July 2015.
13. Web site: Computer Sciences Corporation, Form 8-K, Current Report, Filing Date March 28, 2014 . sec.gov . Nov 2, 2020.
14. News: Exclusive: Computer Sciences prepares to break itself up - sources. Reuters. 14 May 2015. 21 May 2015.
15. News: CSC to Combine Government Services Unit with SRA Upon Separation from CSC; Combination will Create Leading Pure-Play Government I.T. Business in the U.S. . October 2, 2015 . CSC.
16. Web site: CSC and HCL Form Joint Venture to Deliver Digital Software and Services to Global Banking Clients. BusinessWire. 23 July 2015.
17. Web site: CeleritiFinTech. HCLTECH.
18. Web site: Computer Sciences (CSC) Completes Fixnetix Acquisition. NASDAQ.com. 2016-02-25.
19. Web site: CSC Finalizes Fruition Partners Acquisition. Computer Sciences Corporation. en-US. 2016-02-25. https://web.archive.org/web/20170223114226/https://www.csc.com/newsroom/press_releases/133905-csc_finalizes_fruition_partners_acquisition. February 23, 2017. dead.
20. Web site: CSC Confirms Agreement to Acquire Australia's UXC Limited. Computer Sciences Corporation. en-US. 2016-02-25. https://web.archive.org/web/20160228000749/http://www.csc.com/newsroom/press_releases/135616-csc_confirms_agreement_to_acquire_australia_s_uxc_limited. February 28, 2016. dead. mdy-all.
21. Web site: Computer Sciences Corporation to buy Xchanging in £480m deal. www.cityam.com. 2015-12-09.
22. Web site: CSC moving headquarters to Tysons Corner. WTOP. en-US. 2016-02-25.
23. Software Company | url=http://www.niveosys.com | Magic Quadrant for End-User Outsourcing Services, North America, 26 August 2014 | publisher=Gartner, Inc.
24. Web site: The Top Companies in the IT Services Industry (2009) . November 25, 2014 . https://web.archive.org/web/20110324004816/http://www.servicestop100.org/it-services-companies-top-100.php . March 24, 2011 . dead . mdy-all .
25. Web site: Supplier profile: CSC. Computer Weekly.
26. Web site: CSC Wins $59 Million Task Order From FBI to Provide Call Center. Bloomberg.
27. Web site: Computer weekly Supplier Profile : CSC. CSC’s outsourcing journey has brought it full circle. 3.
28. Web site: Computer Sciences Corporation, Form 8-K, Current Report, Filing Date Dec 13, 2002 . secdatabase.com . Mar 29, 2013.
29. Web site: Computer Sciences Corporation Completes Acquisition of DynCorp . August 19, 2012 . https://web.archive.org/web/20121213182413/http://www.csc.com/newsroom/press_releases/2633-computer_sciences_corporation_completes_acquisition_of_dyncorp . December 13, 2012 . dead . mdy-all .
30. Web site: CSC completes acquisition of Covansys . August 19, 2012 . https://web.archive.org/web/20121116193621/http://www.csc.com/newsroom/press_releases/3255-csc_completes_acquisition_of_covansys . November 16, 2012 . dead . mdy-all .
31. Web site: CSC Named to Software Magazine's 30th Annual Software 500. Computer Sciences Corporation. 2 July 2015. March 16, 2014. https://web.archive.org/web/20140316013438/http://www.csc.com/newsroom/press_releases/89470-csc_named_to_software_magazine_s_30th_annual_software_500. dead.
32. Web site: Portero . Ashley . 30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008-2010 . . 26 December 2011 . https://web.archive.org/web/20120107173713/http://www.ibtimes.com/articles/264481/20111209/30-major-u-s-corporations-paid-lobby.htm . January 7, 2012 . dead . mdy .
33. Web site: CSC Accounting Fraud Extends to Australia - BizCloud® Network. https://web.archive.org/web/20111115204817/http://bizcloudnetwork.com/computer-sciences-corp-accounting-fraud-australia. dead. 15 November 2011. Nebojsa Despotovic. 13 November 2011. BizCloud® Network. 2 July 2015.
34. Web site: Bort. Julie. The SEC just clawed back $4 million from the former CEO of tech giant CSC and accused it of fraud. 2020-12-10. Business Insider.
35. Web site: Computer Sciences Corporation torture link challenges Norway's ethical reputation . August 19, 2012 . https://web.archive.org/web/20120601081413/http://www.reprieve.org.uk/blog/2012_05_17_norway_csc_investor_rendition/ . June 1, 2012 . dead . mdy-all .
36. Web site: Lloyds owns stake in US firm accused over CIA torture flights. Rupert Neate. the Guardian. 2 July 2015.