Unisys Corporation ([url=http://www.zacks.com/stock/quote/uis]UIS[/url]) has recently announced that its German subsidiary has won a five-year contract for information technology (IT) outsourcing services from Henkel AG & Co.

Pennsylvania-based Unisys provides IT services and solutions that offer clients with expertise in systems integration (SI), outsourcing, infrastructure, server technology and consulting. Henkel AG is a Germany based IT outsourcing company.

Unisys was one of three providers chosen by Henkel as part of an IT outsourcing program to help the company reduce costs and increase quality of service delivery.

Under the terms of the agreement, Unisys will provide a range of end-user support services for Henkel’s growing business, including desktop management and support, service desk, end-point security, upgrades and repairs to personal computers and notebooks, and transition services based on the Information Technology Infrastructure Library standard.

Meanwhile, IT spending is expected to pick up by early 2010 and Unisys expects to benefit from government spending on security technology. Unisys competes with bigwigs such as International Business Machines Corp. ([url=http://www.zacks.com/stock/quote/ibm]IBM[/url]) and Accenture Ltd. ([url=http://www.zacks.com/stock/quote/acn]ACN[/url]) in providing IT services.

The Unisys management had underlined a restructuring plan six months back to improve profitability. The company hopes to derive tangible results from its ongoing restructuring after several execution missteps in the past. The company had earlier reported better-than-expected results for the second quarter due to its ongoing efforts to reduce costs.

Although we remain concerned about the high level of debt, we believe that the new management should be able to turn around the company. We maintain our Neutral rating on the stock.