Sears, Roebuck and Co. (NYSE: S) today announced that the company and Computer Sciences Corporation (NYSE: CSC) have agreed to enter into negotiations to provide Sears with state-of-the-art Information Technology infrastructure support services.
Upon the anticipated successful completion of negotiations, CSC would provide Sears with services including desktops, servers, systems that support Sears-related websites, voice and data networks, and decision-support technology. The final agreement is expected to be completed in the second quarter.
The contract size is expected to be approximately $200 million a year for up to ten years for CSC to provide Sears with Information Technology infrastructure support services currently performed by Sears. Sears expects the relationship will allow the company to focus on its core retail and related services systems while providing improved capabilities coupled with the opportunity for significant operational and cost efficiencies.
"We believe this strategic relationship will be a win-win for Sears and CSC. By working with CSC, Sears will have access to leading-edge technology that allows us to better serve our customers," said Sears Chief Information Officer, Gerald F. Kelly, Jr. "As a multichannel retail and related services company, there's a significant advantage to Sears to have these services provided by a world-class technology partner like CSC."
"We are delighted to have been selected to negotiate this important agreement with Sears," said CSC Chairman and Chief Executive Officer Van B. Honeycutt. "We look forward to applying the full complement of CSC's best practices, process excellence, proven methodologies and continuous innovation to help Sears achieve its business vision."
Kelly added, "Based on our disciplined evaluation process, we chose CSC because we believe they will provide superior solutions and technology innovation that will heighten the stability and reliability of Sears' technical infrastructure and will provide a platform for future improvements at a lower cost. And, very importantly, CSC will also provide fair and equitable treatment for our associates."
There are approximately 260 Sears associates who manage the company's technical infrastructure. Subject to final agreement, Sears expects that CSC will hire substantially all of the affected associates.
Sears will retain responsibility for overall technology standards, architecture and service policies.
Sears, Roebuck and Co. is a leading broadline retailer providing merchandise and related services. With revenues in 2003 of $41.1 billion, the company offers its wide range of home merchandise, apparel and automotive products and services through more than 2,300 Sears-branded and affiliated stores in the U.S. and Canada, including approximately 1,000 full-line stores and 1,300 specialty stores. Sears also offers a variety of merchandise and services through sears.com, landsend.com, and specialty catalogs. Sears is the only retailer where consumers can find each of the Kenmore, Craftsman, DieHard and Lands' End brands together -- among the most trusted and preferred brands in the U.S. The company is the largest provider of product repair services with more than 14 million service calls made annually.
Founded in 1959, Computer Sciences Corporation is a leading global information technology (IT) services company. CSC's mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.
With approximately 90,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $13.8 billion for the 12 months ended Jan. 2, 2004. For more information, visit the company's Web site at www.csc.com .
SOURCE: Sears, Roebuck and Co.
CONTACT: Media, Chris Brathwaite of Sears, Roebuck and Co.,
+1-847-286-4681, or Mike Dickerson of Computer Sciences Corporation,