Computer Sciences lands deal worth up to $1.3 billion

Technology services company Computer Sciences said Monday that it snagged a seven-year outsourcing contract with Zurich Financial Services worth up to about $1.3 billion, the latest sign of momentum for major outsourcing deals. Computer Sciences will assume responsibility for providing all applications development and support services to Zurich's businesses in the United States, the United Kingdom, Switzerland and Germany. About 1,600 Zurich IT employees are expected to transfer to Computer Sciences. Headquartered in Switzerland, Zurich Financial Services is an insurance-based financial services company.

Outsourcing deals that topped $1 billion were on the rise in the second quarter of 2004 and are set to surge even more, according to a recent study. El Segundo, Calif.-based Computer Sciences competes against companies including IBM, Electronic Data Systems and Hewlett-Packard.