CSC wins $200M IT deal from Budget Group

Budget Group Inc in Florida, US, is outsourcing virtually all its information technology to Computer Sciences Corp (CSC) under a $US200 million, five-year contract.

Terms of the deal call for El Segundo, California-based CSC to hire Budget's IT staff of about 130 people. CSC will also create an IT project office, which will coordinate IT projects at Budget's car and truck rental units and car sales group.

Previously, the three Budget units maintained separate IT staffs and networks, but now these will be consolidated under the outsourcing contract, according to Budget chief information officer John Costanza.

In an unusual twist, the CSC project office will also coordinate and oversee the IT activities of rival outsourcer Perot Systems at another Budget-owned company -- Ryder TRS in Denver. Budget bought Ryder TRS last June, after that company had already outsourced new applications development work to Cambridge Technology Partners and handed over day-to-day IT operations to Perot.