San Diego Deal Has CSC Thinking of More

Computer Sciences Corp.'s big contract win in San Diego County has given the company a potent calling card as it attempts to replicate its planned technology outsourcing work with other state and local governments.

By Steve LeSueur, Staff WriterComputer Sciences Corp.'s big contract win in San Diego County has given the company a potent calling card as it attempts to replicate its planned technology outsourcing work with other state and local governments."San Diego County could be a ground-breaking activity for this market," said Richard Jennings, vice president of the Technology Management Group's Western Region for the company and CSC's lead executive for the project. Other municipalities have been in contact with county officials and are watching the project closely, he said.But while the San Diego project has revived hopes that full-scale technology outsourcing will catch hold with local governments, neither Jennings nor other industry officials expect an immediate stampede in this direction."San Diego will act as a test bed, but the vast majority of engagements will continue to be selective outsourcing" in which governments outsource pieces of their information technology functions, such as data centers, desktop management or applications development, said James Macaulay, a public-sector analyst with Dataquest, a research arm of the GartnerGroup, Stamford, Conn.State and local government spending on IT outsourcing is expected to grow by about 25 percent annually, from $1.25 billion in 1998 to $3.82 billion in 2003, according to Macaulay.There will be a significant amount of interest in the San Diego project, with visits from other jurisdictions and case studies of the process, but governments will want to see the actual results before jumping in, said Tom Davies, a senior vice president for Internet services with Federal Sources Inc. of McLean, Va."Other municipalities will follow, but it will not be a parade," he said.San Diego County's Board Aug. 26 unanimously approved a seven-year, $644 million contract to the CSC-led Pennant Alliance team to provide a full spectrum of information and telecommunications services to the county, including applications, telephones, networks and desktop and data center operations. Other major vendors on the team include Science Applications International Corp. of San Diego, Lucent Technologies Inc. of Murray Hill, N.J., and Pacific Bell of SBC Communications Inc., San Antonio.Nearly 300 county IT employees will become eligible to join either CSC or SAIC when the planned transition to the private vendors occurs Dec. 13.Although CSC is one of the top five systems integrators in the federal government market, the company has not been a major force in the state and local government arena. The company generated nearly $2 billion in 1999 revenue from its federal government work, but less than $100 million from state and local governments, according to estimates by Federal Sources Inc. The company has annual revenue of $8.2 billion.CSC's state and local customers include Illinois, where CSC is helping the state with its human resources and revenue systems, and Connecticut, where the company is developing an automated personnel system. CSC is also assisting the Minnesota Public Employees Retirement Association in overhauling its retirement planning programs. CSC officials did not provide cost figures for these projects."The state and local market place hasn't been a priority for CSC," said Davies.The San Diego County win, however, raises its prominence and gives CSC a significant presence in the state and local government arena. Nevertheless, company officials said they have no plans to change their strategy for capturing more work in this market. The company, for example, does not have a separate unit or office for state and local government work, but instead handles these projects though the relevant commercial business units, such as outsourcing or systems integration.But if state and local governments start pursuing larger IT outsourcing projects similar to the San Diego deal, CSC will be ready to jump into the competition, said Jennings.When asked whether there was a minimum threshold for outsourcing projects in which CSC would participate, he said, "We won't rule out any projects, but will evaluate each on its merits." XXXSPLITXXX-By Steve LeSueurThe next major technology outsourcing opportunity among state and local governments could be in Japan.The Gifu Prefecture, a regional government with a population of about 2 million, is considering a full-scale outsourcing project that could be worth $15 million to $20 million annually over five years, according to Akira Wantanabe, a representative of the Gifu government who is stationed in Los Angeles.Wantanabe last month met with San Diego County officials to learn how the county went about selecting a vendor to take over its information technology functions. "The system in San Diego is a very good example for us to follow," Wantanabe said.Like San Diego County, Gifu is looking to outsource a full range of IT services, such as data centers and desktops. But telecommunications would be excluded.Gifu would be the first Japanese government to outsource its IT services if it proceeds with the project, Wantanabe said. The government wants to begin that work in 2001.To help guide their decision, Gifu officials have asked Electronic Data Systems Corp. of Plano, Texas, to evaluate the government's information technology organizations and services and make recommendations on possible areas for consolidation and improved efficiency, said Maureen Cronley of EDS marketing and sales in Japan. In addition, EDS was tasked to assess how to expand the local economy through IT industry development.Companies that could compete for the Gifu outsourcing contract include Computer Sciences Corp., EDS, IBM Corp., and Japanese companies Fujitsu Limited and NEC Corp.

Richard Jennings























































X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.