Computer Sciences Corporation (CSC) recently announced that it will be offering one of its healthcare suites to a Singapore-based multi-disciplinary hospital, Tan Tock Seng Hospital (“TTSH”). Tan Tock Seng Hospital is well equipped with 27 clinical departments, 15 specialist centers, 1500 beds and a staff of 6000. Financial details of the deal were kept confidential.
Under the contract, Computer Sciences will offer its Enterprise Scheduling Solution (previously known as UltraGenda) to TTSH. The solution helps hospitals deliver efficient and prompt services by automating the process of bookings and referrals (transfers or recommendations) efficiently across hospitals and healthcare agencies.
Bookings of hospital beds or appointments and referrals to other departments or hospitals are complex processes. Multi-facility hospitals face huge pressure in managing various departments and other issues. This causes further delays in booking and referral activities. A work-load optimizing tool such as Computer Sciences’ Enterprise Scheduling Solution could be of immense help in such a situation.
Computer Sciences is quite confident about the performance of the suite as it has tasted success at various hospitals across Europe. The tech consultant is highly optimistic about the product’s prospects in TTSH. Success at the hospital will create demand for the product not only in Singapore but also in the Asia-Pacific region.
Apart from this, Computer Sciences won a multi-year contract extension from Safety Insurance Group for an undisclosed sum.
Deal wins are catalysts for any company and Computer Sciences has no dearth of them. But the growing uncertainty regarding the U.K. National Health Service contract, intense competition in the IT and cloud computing space from both small and big players such as Accenture plc (ACN) and Hewlett-Packard Company (HPQ), its European exposure and strained federal budgets have prompted our bearish outlook on the stock.
Currently, CSC holds a Zacks #5 Rank (implying a short-term Strong Sell rating).
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