Computer Science Corporation (CSC) recently announced that its Managed Security Service (MSS) would now include Horizon. Horizon takes care of regulatory needs for the privacy and protection of information, reducing the risk of maintaining large data volumes.
The new Horizon simplifies the compliance process, by bringing compliance solutions under one umbrella (customers often procure these security solutions from multiple vendors). Therefore, Horizon should be able to help the customer bring down total IT cost.
Apart from this, Computer Sciences’ IT and management consulting services advise clients on acquisitions, IT security, strategy and business process re-engineering. The company also licenses sophisticated software systems for the financial services markets and provides a broad array of e-business solutions that cater to the needs of large commercial and government clients.
Recently, the company reported first-quarter revenues of $3.26 billion, down 10.3% from $3.63 billion in the year-ago quarter. All business segments contributed to the decline in revenues. However, due to effective cost-cutting actions, CSC was able to expand its margins.
Computer Sciences Corporation is one of the leading players in the information technology (IT) services industry in North America, Europe, Asia, and Australia. Its service offerings include outsourcing, systems integration, and I/T and management consulting and other professional services, including e-business solutions.
We believe that the synergies from expanding its MSS to include Horizon smoothens the governance, risk and compliance (GRC) process for organisations. Considering the increased focus on privacy and security, the introduction should contribute generously to its revenue.
However, the company is facing stiff competition from the likes of BMC Software, Inc. (BMC), Accenture plc (ACN), Syntel Inc. (SYNT) as well as a challenging macroeconomic condition in Europe. Delay in the government’s order renewal process could also add to its woes.
Computer Sciences holds a Zacks Rank #2 (Buy).
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