WT Business Beat

By Nick Wakeman

Blog archive
Nick Wakeman

CSC dodges a bullet with its U.K. settlement

Computer Sciences Corp.'s new CEO Michael Lawrie apparently is delivering on some early promises to right the ship.

The company has settled its dispute with the U.K. National Health Service that had been dragging down the company’s financial performance for several years.

The settlement, which includes a payment of $108 million to CSC, includes both sides dropping claims they had against each other.

The troubled contract has been marked by delays, poor performance and cost overruns as CSC was trying to execute a $3.7 billion contract to provide health IT services in the north west and west midlands regions of the country. The U.K. government nearly canceled the contract last year.

The settlement pays CSC for services to date and continues the contract through 2016. However, it does release certain U.K. regional health trusts from having to buy CSC’s Lorenzo health systems. They can now choose their own systems.

The settlement has to be a feather in Lawrie’s cap. The project was cited by Standards and Poor’s last May when it lowered CSC’s credit rating.

The contract also contributed to a $4.2 billion loss from continuing operations.

Lawrie came on board at CSC in March and quickly said the company was in need of a turnaround. One of his goals was to renegotiate poor performing contracts.

It looks like he has a big win under his belt.

 

Posted by Nick Wakeman on Sep 04, 2012 at 7:23 PM


Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.