Tuesday, April 04, 2006

Computer Sciences up for sale?

It looks like leading outsourcing firm Computer Sciences (CSC) is up for sale. They have appointed Goldman Sachs to review their options - which is corporate speak for "we want to sell the company".

And you can't really blame them, for outsourcing has become less du jour lately. IT has become strategic again and companies are taking IT back in-house. Plus, the large all-encompassing outsourcing contracts are no longer the way governments or businesses want to go. If they outsource they want specific processes covered under specific contracts.

The likes of CSC have also not been helped by a bunch of new Indian lower cost outsourcing firms entering the market. It could prove a tough challenge to find a buyer. Lots have looked, including EDS, HP and a bunch of private equity players - and no one has bitten.

But, with CSC's announcement that they will shed 8,000 staff in Europe - that just might make them more attractive. Expect the Private Equity dudes to circle.

No comments: