Computer Sciences Corporation (CSC) recently announced that the Hastings Mutual Insurance Company has selected the updated version of CSC’s Insurance Industry Data Model – Hastings, Mich. 3.0, which unifies multiple sources of data into a complete logical representation of data across an insurance enterprise.
The company will use this model to gain detailed insight into its business operations for enhanced decision-making. The model has a licensable offering, which is a prime solution offered by the company, along with CSC’s master data management and data governance consulting services, which cover effective risk protection
The application was upgraded last September to include all the necessary data attributes for the global insurer, covering and unifying information from all kinds of insurance, including of life insurance, annuities, pensions and property and casualty/general insurance. CSC is leaving no stones unturned to develop its insurance business, although customer demand will take some time to pick up as the insurance companies are yet to recover fully.
This technology will help employees carry out emergency back-office operations efficiently, as they can conduct all the functions at a greater speed. The highly efficient application enables smooth flow of data across various business units. This tool can be very effective for insurance officials and can play a pivotal role in reducing bottlenecks in their workflow.
In addition, the company has won several big deals including the enhancement of the Value Chain Visibility (VCV) and Auto-ID program with the global aircraft manufacturing company, Airbus and the Department of State (DoS) Bureau of Consular Affairs contract worth $2.8 billion. As per this deal, CSC will provide a range of visa-related business process support services to U.S. embassies and consulates abroad.
Apart from the above deals, the company will also partner with software providers to develop host applications and provide support services and training for managing the newly formed e-health system.
We remain appreciative of Computer Sciences’ steady flow of deal wins, as they indicate the acceptability of its products. We are also encouraged by Computer Sciences’ third quarter results but remain concerned regarding its high debt burden.
Strategic alliances, major deal wins, product enhancement and positive macro economic developments are helping the company to improve its business prospects. However, we are a bit concerned about the intense competition in the IT and cloud computing space from big players such as Accenture (ACN), Hewlett-Packard (HPQ) and CA Inc. (CA).
The company has a Zacks #3 Rank, which implies a Hold rating over the short term.
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