Chief executives look to strategic outsourcing to support future business strategies and business transformation

CHIEF EXECUTIVES LOOK TO STRATEGIC OUTSOURCING TO SUPPORT FUTURE BUSINESS STRATEGIES AND BUSINESS TRANSFORMATION CSC SURVEY REVEALS KEY TRENDS IN OPINION OF SENIOR BUSINESS LEADERS ACROSS EUROPE Stockholm, 22 October 2003 - Computer Sciences Corporation (NYSE: CSC) announced today that results of a recent CSC survey of senior European decision makers show 70 per cent of CEOs believe strategic outsourcing will play an important role in improving business results in the future. The research, which questioned the views of CEOs, CIOs and CFOs within Europe's top 250 businesses, highlights key trends in how and why strategic outsourcing is being embraced to improve business performance. Findings include: - Their main objective for strategic outsourcing continues to be to reduce or control costs; - Executives see outsourcing delivering greater flexibility and business transformation. Nearly half (47 per cent) of the respondents cited a demand for strategic outsourcing to help achieve significant or radical transformations in business processes and 72 per cent seeking similar transformations in overall Information Technology (IT); and - Most now prefer to work with consortia that provide access to specialist skills from multiple suppliers. The survey, conducted by CSC's Research Services organisation and entitled "Strategic Outsourcing: Current Practices and Future Expectations", is the first to give a snapshot view of the strategic outsourcing activities of the top 250 European-owned businesses. The research explores the perceptions held by senior executives in the past (five years ago), the present and in the future, and reveals the trend that outsourcing is increasingly being seen as an important driver of future business growth. By questioning executives on the robustness of their current business strategy and levels of satisfaction with large outsourcing deals (in excess of ?50million) the survey provides a comprehensive overview of the European outsourcing landscape. "Whilst the past three years have seen major organisations choose to outsource parts of their business to meet tough economic objectives, the findings of this survey clearly demonstrate the opportunities for businesses that embrace a more comprehensive or strategic approach to outsourcing," commented George Bell, president of CSC's European operations. "Outsourcing enables businesses to reduce costs and leverage high levels of expertise. It also helps executives transform their businesses and increase their agility as they face an increasingly volatile and changing economy." The survey also highlighted the key issues and dilemmas facing senior executives when deciding on an outsourcing strategy. Nearly half of the companies reported they had explicit approaches to sourcing partners but only one third had a similar such approach to negotiation. In addition a significant trend highlighted was the fact that 90 per cent of respondents would prefer to manage a number of best of breed suppliers - reaffirming the industry move towards a consortia approach. "Using multiple suppliers can provide businesses with access to high levels of expertise, but this typically requires more time and effort for businesses in both the selection of outsourcing providers and on- going management," continued Bell. "Companies need to weigh up the cost, service and management implications of either outsourcing to one supplier or to multiple suppliers. An alternative to these approaches is to outsource to a single supplier who manages a number of service companies on the client's behalf. Access to specialist suppliers through a single point of contact and management is definitely the right approach for many large deals so we expect to see an increase in new European deals signed on consortia or alliance based models." A presentation detailing the main findings of the survey, including a breakdown of respondents by country and industry sector, can be obtained by contacting Simon Knowles, European Marketing at CSC on 01252-536871 or e-mail: "From a Swedish perspective the results of the survey confirms what we have experienced lately in discussions with our customers", commented Ulf Baggström, Managing Director CSC Sweden . "The demand for an outsourcing service provider that acts as a change agent or prime contractor adding true business value is increasing rapidly over time. The ever changing business climate challenges us to constantly deliver leading edge solutions but also allows us to act with flexibility and agility to support our customers' business mission." About Research Services CSC's Research Services is dedicated to the study of emerging management and technological issues. Through a global network of innovative thinkers Research Services advises top executives on the business implications of developments in information technology and best practices in managing IS groups. The three principal areas focused on are business innovation using information technology; transforming the IS function and transforming the technology base. Research Services was formed in 1976 and continues to offer its clients access to the most stimulating thinking in management practice. 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 92,000 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 $12.1 billion for the 12 months ended July 4, 2003. For more information, visit the company's Web site at For further information please contact: Per Kristiansson Marketing Director Tel: 08-410 702 89 Mob: 0709-899 289 Email: ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: Appendix