Computer Sciences Corporation

Computer Sciences Corporation

Company type	Public
Industry	Information technology, professional services
Founded	1 April 1959 (1959-04-01) in Los Angeles, California, United States
Founder	Roy Nutt, Fletcher R. Jones
Defunct	April 3, 2017 (2017-04-03)
Fate	Merged with HP Enterprise Services to form DXC Technology
Headquarters	Tysons, Virginia , United States
Area served	North America, Europe, Asia, Australia
Key people	Mike Laphen (former CEO)
Products	IT and professional services

Computer Sciences Corporation (CSC) was a United States-based multinational corporation focused on delivering information technology (IT) and professional services. On April 3, 2017, it combined with the Enterprise Services division of HP Enterprise, resulting in the establishment of DXC Technology.

History

Established in April 1959 in Los Angeles, California, by entrepreneurs Roy Nutt and Fletcher R. Jones, CSC originally provided programming utilities such as assemblers and compilers. Throughout the 1960s, the company secured significant software contracts with corporations like IBM and Honeywell, as well as government organizations including NASA. By 1963, CSC had become the largest software firm in the United States and was the first software company to be listed on the American Stock Exchange. By 1968, it had transitioned to the New York Stock Exchange and expanded its operations to Canada, India, Europe, and South America.

During the 1970s and 1980s, CSC grew its global footprint through acquisitions and won substantial contracts within financial services and defense industries. In 2000, it established Innovative Banking Solutions AG in Germany to provide SAP-based solutions tailored for mortgage lenders.

Initially based in California, CSC moved its headquarters to Falls Church, Virginia, in March 2008, later relocating again to Tysons, Virginia, in 2016. The company had been included in the Fortune 500 list since 1995 and was ranked 162nd in 2012.

From 2013 through 2015, CSC executed a robust acquisition campaign to broaden its capabilities: acquiring ServiceMesh (cloud management), Infochimps (big data), 42Six (analytics), iSOFT (application solutions), AppLabs (application testing), Fixnetix (capital markets trading platforms), Fruition Partners (service management software), UXC Limited (Australian IT services), and Xchanging (business technology services). In July 2015, CSC partnered with HCL Technologies to create Celeriti FinTech, a joint venture focused on delivering digital banking software worldwide.

In May 2015, CSC announced intentions to separate its public sector operations from commercial business units. Following this decision, its Government Services division merged with SRA International to form CSRA by November 2015.

The strategic combination with HP Enterprise Services in April 2017 led to the formation of DXC Technology, establishing a leading global IT services provider with enhanced market presence and competitive positioning.

Business

CSC was recognized as a prominent global IT service company with extensive operations spanning North America, Europe, Asia, and Australia.

Prior to divesting its North American Public Sector (NPS) division in 2015, CSC’s business comprised three primary segments:

• North American Public Sector (NPS): Since 1961, CSC served as a principal IT partner for U.S. federal agencies including the Department of Defense, FBI, CIA, Department of Homeland Security, and NASA. In 2012, contracts from federal government clients accounted for 36% of CSC’s total revenue.
• Managed Services
• Business Solutions and Services

The company pursued expansion through acquisitions such as DynCorp in 2003 and Covansys Corporation in 2007, strengthening its service offerings and market reach.

Awards and recognition

• In September 2012, CSC was positioned 8th on the Software Magazine Software 500 ranking, which lists the largest global software and service providers.

Criticism

• In June 2013, Margaret Hodge, chairperson of the UK Public Accounts Committee, described CSC as a "rotten company providing a hopeless system" in relation to their multibillion-pound Lorenzo contract under the National Programme for IT.
• Public Campaign criticized CSC in December 2011 for allocating $4.39 million to lobbying efforts while paying no taxes between 2008 and 2010, instead receiving $305 million in tax rebates despite reporting $1.67 billion in profits.
• The U.S. Securities and Exchange Commission (SEC) launched an investigation in February 2011 into CSC’s accounting practices in Denmark and Australia after discovering $19 million in both deliberate and accidental discrepancies. Former CEO Mike Laphen faced fraud allegations, resulting in a $4.35 million recovery of funds.
• CSC was accused of human rights violations for its role in supporting illegal CIA rendition flights from 2003 to 2006, drawing criticism from shareholders including those from Norway and the United Kingdom.
• Legal controversies involving CSC include:
  • The WorldBridge visa service handling millions of UK visa applications without authorization from the British government.
  • Failure to deliver an updated IRS tax-filing system by the January 2006 deadline in 1998, which led to losses estimated between $200 and $300 million for the IRS due to insufficient fraud detection.

See also

• VP/MS (Visual Product Modeling System), a lifecycle management tool developed by CSC
• Top 100 US Federal Contractors
• CSRA Inc., created through the merger of CSC's North American Public Sector division with SRA International
• Team CSC, professional cycling team sponsored by CSC under owner Bjarne Riis from 2003 to 2010

External links

• CSC SEC Filings