Business

NEWS BRIEF

Sears Taps CSC for IT in $1.6 Billion Deal

Sears announced Tuesday that it has signed an agreement to have Computer Sciences Corporation handle the company’s IT infrastructure. According to the deal, CSC will take over the support and maintenance of Sears’ servers, client PCs, systems supporting Sears-related Web sites, decision-support technology and voice and data networks.

The US$1.6 billion deal will span a ten-year period. Already Sears has sold miscellaneous assets to CSC for $19 million and plans to record about $35 million in depreciation expenses related to these assets.

According to a joint press release, CSC will hire the majority of Sears employees who were previously running Sears’ IT infrastructure by June 12th. However, Sears still will be ultimately responsible for overall service policies, technology standards and IT architecture.

“The strategic alliance with CSC is the best choice for Sears, our associates, our customers and our shareholders,” Sears CIO Gerald Kelly, Jr. said. “The industry best practices and experience that CSC brings with them will heighten the stability and reliability of Sears’ technical infrastructure and will provide a platform for future improvement at a lower cost.”

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