Posted by Christopher Andrews on September 17, 2009
I recently attended a CSC analyst event in which they described several of the wins and initiatives that they have experienced over the past year. Like many services companies Forrester speaks with, the company is taking a heavy vertical (industry-specific) market strategy and positioning itself in hot markets related to government spending, healthcare, and energy.
What was new about this strategy? Not much….And while in some cases “not much” would be a bad thing, for CSC this bodes well. Why? Many services companies – sensing a shift in hot verticals in 2009, are rushing to compile solutions in areas affected by stimulus spending. But CSC was already in these markets, and knows them well. They’ve been focusing on the public sector for years – just North American public service activity accounts for about 35% of revenues – and they have the history and relationships to participate in robust stimulus programs. For more on such programs, see the report on stimulus spending by Forrester analysts Andy Bartels and Jennifer Belissent (available at http://www.forrester.com/Research/Document/0,7211,54359,00.html)
Highlighting the opportunity, CSC just announced a $46M contract with the US postal service, and Forrester’s deal database shows healthy activity in the transportation sector of the US and Europe. The stock price reflects this – after a rough 2008 it’s back up at pre-recession levels.
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