CSC in Talks to Sell Unit to HP

Computer Sciences Corp. is in discussions with Hewlett Packard Co. to sell its New Zealand business to HP.

The decision to sell the operation is part of CSC's strategy to focus on larger markets that offer opportunities with clients who have complex information technology needs, the El Segundo, Calif.-based company said.

"The scale and scope of the opportunities in the New Zealand market simply do not support the strategic business direction that we have charted," said Van Honeycutt, CSC's chairman and chief executive officer.

Company officials did not say when a deal may be struck. HP, based in Palo Alto, Calif., is expected to offer jobs to all of CSC's New Zealand employees.

CSC's New Zealand operation focuses on outsourcing, mainframe and desktop application development and systems integration services. Clients include a variety of companies, branches of global organizations and government departments.

George Bell, managing director of CSC's Australian Group, said the company will concentrate its growth in the region in Australia and Asia. The company's Australian business has grown by 60 percent the past two years.

CSC is looking to expand through large-scale systems integration, application development and infrastructure outsourcing contracts, he said.