BHP Billiton snubs CSC in WAN deal

BHP Billiton snubs CSC in WAN deal

Computer Sciences Corporation's $700 million outsourcing deal with BHP Billiton has hit a rough spot, with IT employees suggesting the partnership is "in chaos".

CSC beat rival EDS to win the seven-year outsourcing deal with BHP IT, as it then was, which was announced in May 2000.

Anonymous sources said that BHP Billiton's decision to tender out its entire wide area network to Equant, replacing CSC, is evidence of the rift.

While the Equant deal has not been formally announced, Ken Foster, a BHP Billiton vice president and global account executive, said the WAN contract represents only a very small portion of its outsourcing agreement with CSC.

"CSC continues to maintain a good relationship with BHP Billiton and continues to assist it in the overall management and governance of its network environment," he said.

Equant's PR agency was unwilling to comment on the contract win. "We have a strict policy of not commenting on rumour or speculation," a PR spokesperson said.

Under the outsourcing deal, CSC provides integrated IT services such as consulting and systems integration. When the deal was announced, CSC said it expects to generate a 20 per cent reduction in costs, however employees who were on BHP Billiton's staff and transferred to CSC as part of the deal claim they are suffering under "dramatically degraded services".

A CSC spokesperson denied that the deal was in jeopardy or that service levels have dropped.

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