EL SEGUNDO, Calif., Aug. 4 /PRNewswire-FirstCall/ -- Computer Sciences
Corporation (NYSE: CSC) and Telkom South Africa (NYSE and JSE: TKG) today
announced that the two companies have been awarded a five-year, $275 million
network outsourcing contract with Old Mutual (LSE and JSE: OML), the largest
financial services group in South Africa, and Nedbank (JSE: NED), one of the
four largest banking groups in South Africa. CSC estimates its share of the
revenue to be approximately $125 million.
The new agreement follows and is incremental to a seven-year, $300 million
information technology (IT) outsourcing agreement CSC signed with Old Mutual
in 1999, under which CSC manages Old Mutual's IT infrastructure in South
Africa.
Under the terms of the new agreement, CSC and Telkom will manage and
operate networking services for Old Mutual and Nedbank throughout South
Africa. Specific responsibilities include the creation of a single, shared
data and voice network infrastructure, and the provision of data and voice
services, network security and help desk support. These services will support
employees located at Old Mutual and Nedbank operational centers in Cape Town,
Durban and Johannesburg, and branches throughout South Africa. The companies
assumed responsibility for service provision on Aug. 1, 2005.
CSC and Telkom bring a wide range of resources, knowledge and technical
expertise to the engagement. CSC will manage the relationship with Old Mutual
and Nedbank, act as the single point of contact for all communication and
services and, together with Telkom, leverage appropriate resources and
expertise to provide required services. CSC will also provide local area
network management and support services at Old Mutual and Nedbank principal
operational centers, and deliver help desk services from its facility in Cape
Town. Telkom will be responsible for the management and support of wide area
network and voice services, implementation of a centralized telephone
management solution and local area network support for branch locations.
"This agreement with Old Mutual and Nedbank reinforces CSC's position as a
major IT provider to the financial services sector in South Africa," said Guy
Hains, president of CSC's operations in Europe, the Middle East and Africa.
"We look forward to applying our expertise and experience to help Old Mutual
and Nedbank achieve significant business results."
"This agreement positions Telkom as a serious player in the IT and
outsourcing market," said Telkom CEO Sizwe Nxasana. "This endeavor is in line
with our strategy to provide end-to-end customer focused solutions aimed at
supporting the customers' business strategies and operations."
"Industry analysts predict that network convergence will become pervasive
in South Africa as well as on a global scale," said Theo Nkone, CIO at Old
Mutual. "This agreement is the first joint implementation between two major
financial services companies in South Africa and enhances the reach and range
of services Old Mutual and Nedbank can offer at its many locations."
"This new and exciting venture will allow Nedbank to demonstrate business
value, reduce the risk of technology failures and leverage the buying power of
the two organizations," said Willie Scholtz, divisional director of Group IT
Operations at Nedbank. "Old Mutual and Nedbank will benefit from immediate
and significant cost reductions and will have access to leading edge
technology with no capital expenditure requirements."
About Telkom SA
Telkom SA Limited is one of the largest companies registered in the
Republic of South Africa and is the largest services provider on the African
continent based on operating revenue and assets. Telkom offers fixed-line
voice and data services, branded as Telkom, and mobile communications services
through a 50% shareholding in the joint venture, Vodacom, a company
incorporated in the Republic of South Africa. Vodacom operates in South
Africa, Tanzania, Lesotho, the Democratic Republic of Congo (DRC) and
Mozambique and is a joint venture investment with Vodafone Group Plc (35%) and
VenFin Limited (15%).
About The Old Mutual Group
In South Africa, Old Mutual is the largest financial services business,
through its life assurance, asset management, banking and general insurance
operations. Old Mutual South Africa owns majority stakes in Nedbank, and
Mutual & Federal. The company serves 4 million life assurance policyholders
and employs more than 13,000 South Africans in its local operations. Their
core businesses enable millions of South Africans to acquire wealth, financial
independence and security. They are committed to fostering a culture of
savings and self-reliance and are actively involved in many key issues
including Black Economic Empowerment, affirmative procurement, rural economic
development and AIDS education. Old Mutual's investments in infrastructure
have paved the way for massive improvements within the fields of
electrification, water and housing.
About Nedbank Group
Nedbank Group Limited (previously Nedcor Limited) is a bank holding
company that, through its principal banking subsidiary, Nedbank, together with
the other members of the group, operates as one of the four largest banking
groups in South Africa.
The principal services offered by the group comprise of corporate and
retail banking, property finance, investment banking, private banking, foreign
exchange and securities trading. Nedbank Group also generates revenue from
private equity, credit card issuing and processing services, custodial
services, asset management services and bancassurance services.
Nedbank Group's headquarters are in Sandton, Johannesburg, with large
operational centres in Durban and Cape Town.
Nedbank Group has nine subsidiary and/or affiliated banks, as well as
branches and representative offices in certain key global financial centres
that serve to support the international banking requirements of the group's
South African-based multinational clients. The company's ordinary shares have
been listed on the Johannesburg Stock Exchange since 1969.
About CSC
Founded in 1959, Computer Sciences Corporation is a leading global IT
services company. CSC's mission is to provide customers in industry and
government with solutions crafted to meet their specific challenges and enable
them to profit from the advanced use of technology.
With approximately 79,000 employees, CSC provides innovative solutions for
customers around the world by applying leading technologies and CSC's own
advanced capabilities. These include systems design and integration; IT and
business process outsourcing; applications software development; Web and
application hosting; and management consulting. Headquartered in El Segundo,
Calif., CSC reported revenue of $14.1 billion from continuing operations for
the 12 months ended April 1, 2005. For more information, visit the company's
Web site at http://www.csc.com.
SOURCE Computer Sciences Corporation
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Related links:
http://www.csc.com
CONTACT:
Mike Dickerson, Director, Media Relations,
Corporate, +1-310-615-1647, mdickers@csc.com, or Mike Plummer,
Marketing Business Manager, European Business Development, CSC in
United Kingdom, +44 (0)1252.535764, mplummer@csc.com, or Bill
Lackey, Director, Investor Relations, Corporate, +1-310-615-1700,
blackey3@csc.com, all of Computer Sciences Corporation
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