Sears Outsources IT Infrastructure To CSC

Sears, Roebuck and Co. is hiring Computer Sciences Corp. to provide support services for its IT infrastructure under a 10-year, $1.6 billion contract revealed Monday.

CSC will support desktop computers and servers within Sears, as well as the retailer's voice and data networks, according to the two companies. CSC also will service systems that support Sears' Web sites and decision-support systems.

The deal will allow Sears to focus its IT management efforts on its core retail and related customer-service systems while realizing "significant operational and cost efficiencies," according to a statement issued by the companies. Sears will retain responsibility for its overall IT architecture, standards, and service policies.

"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 improvements at a lower cost," Sears CIO Gerald Kelly said in a statement.

Approximately 200 Sears employees manage the company's IT infrastructure, and the majority of them will become CSC employees beginning June 12.CSC beat out Affiliated Computer Services, EDS, Hewlett-Packard, and IBM Global Services for the contract, according to a Sears spokesman.

In March, Sears said it was negotiating with CSC to run its basic IT operations in an effort to cut costs: In its first quarter ended April 3, the retailer reported a net loss of $859 million. Sears, which acquired upscale retailer Lands' End in 2002 for $1.86 billion, also wants to concentrate on high-value initiatives such as integrating Sears' and Lands' End's Web sites.