Ask Mary Jo Morris about outsourcing, and she will tell you about
if from both sides of the fence.
For Morris was outsourced herself when CSC (Computer Sciences Corp)
won a large contract at General Dynamics 12 years ago to take over
a major part of its information technology (IT) function.
"That's when I joined CSC," Morris told Show News. Now
she runs the CSC group responsible for all outsourcing of IT in
the Americas, including aerospace. She recently took over the role
from Paul Cofoni, who now heads up the Federal outsourcing business.
Both are here at Le Bourget, with other CSC executives, to rub antennae
with existing clients and to persuade prospective ones to join the
fold. For the first time they have chalet space, a share in exhibit
facilitator Tom Kallman's International Chalet.
The company has its European headquarters in the United Kingdom
at Brennan House, Farnborough in the BAE Systems Centre.
"Outsourcing has been a major growth engine for CSC,"
says Morris, growing from $300 million with General Dynamics in
1991 to accounting for 42%, or nearly $4.5 billion, of CSC's current
revenues of $10.5 billion a year. For the second year running, CSC
has won nearly $11 billion in contracts, with Federal and aerospace
outsourcing playing a major role.
"The last year was incredible in terms of growth," Morris
says. "We closed some major contracts with AT&T, Nortel
Networks, Raytheon, and an extension to our contract at BAE Systems."
An increasing number of companies are seeing the benefits of outsourcing
their IT and related functions to save costs, improve efficiency,
and to better interact with their customers.
CSC has an impressive aerospace client list that was kick-started
with General Dynamics' massive divestitures when it restructured
in the early 1990s. CSC had contracts with six of the eight business
units that were sold, and it stayed with them as they came under
the ownership of Lockheed, Hughes, Raytheon, Martin Marietta and
Marconi. Those contracts have since grown into business worth some
$1.1 billion, and they've given CSC entrée to the top tier
of the aerospace industry.
Among this year's wins are Alenia Marconi Systems in the UK with
a multimillion-dollar, six-year IT agreement to manage desktop computing,
help desks, midrange services, application management, procurement
and LAN network services, as well as provision of professional services
for the implementation of SAP across Alenia Marconi's UK operations.
CSC also won a $350 million, eight-year extension of an existing
outsourcing agreement with Raytheon Company to provide support for
more than 26,000 desktops at selected sites in California, Arizona
and Washington, D.C. CSC already manages a significant portion of
Raytheon's IT infrastructure, including mainframes and data centers
in Texas and Massachusetts, help-desk support serving 90,000 users,
and network operations that include voice services and telecommunications.
And in the last few months CSC went live at Pratt & Whitney
under a $2.1 billion contract that's been extended to include Pratt
& Whitney Canada and UTC.
"We continue to add value to our aerospace clients by helping
them take costs out of operations, " Morris says. "We
go beyond IT; we are fundamentally a technology company, so we bring
to bear advances in technology that relate to them in all areas,
such as e-business. For example, we have worked with one client
on setting up a portal for spares, set up web hosting for another
client, and we're very active in implementing ERP systems for just
about every one of our clients.
"We take into account how they can leverage technology to create
value not only in IT, but across the whole of their business."
By John Morris