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Why the BPS Business Segment Is Important to CSC

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Jun. 3 2016, Updated 3:07 p.m. ET

Investment in the BPS segment

Computer Science Corporation (CSC) is looking to make significant investments in its Business Process Services (or BPS) segment. The insurance market has been identified as a growing area of market leadership for CSC in its BPS segment, and the company has been actively investing in its capabilities.

CSC expects significant client traction as a result of providing business process services that are closely linked to the firm’s industry-leading intellectual property.

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According to Computer Science Corporation’s CEO, Mike Lawrie, “We did make some investments, the most notable one we’ve been making for the last quarter or so but we increased that was in our BPS platform. Because we are expecting to grow that business pretty significantly, and that does require an investment in the platform and in the people and in some of the skills that we have supporting that business.”

Revenues fall by 2.4% YoY in fiscal 4Q16

CSC recently announced its fiscal 4Q16 revenues. For fiscal 4Q16, revenues fell by 5.4% YoY (year-over-year) to $1.8 billion. On a constant currency basis, revenues fell by 2.4% YoY in fiscal 4Q16. The fiscal results of peer companies IBM (IBM), Cognizant (CTSH), and Accenture (ACN) were also negatively impacted due to a strong dollar (UUP).

Revenues rose by 3.3% quarter-over-quarter in fiscal 4Q16, driven by higher revenue in the BPS and Consulting segments.

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