Computer Sciences Corporation (CSC - Analyst Report) recently announced that it will be offering one of its healthcare suites to a Singapore-based multi-disciplinary hospital, Tan Tock Seng Hospital (‘TTSH’). Tan Tock Seng Hospital is well equipped with 27 clinical departments, 15 specialist centers, 1500 beds and a staff of 6000. Financial details of the deal were kept confidential.
Under the contract, Computer Sciences will offer its Enterprise Scheduling Solution (which it inherited from its iSoft Group acquisition in April 2011) to TTSH. The solution helps hospitals deliver efficient and prompt services by automating the process of bookings and referrals (transfers or recommendations) efficiently across hospitals and healthcare agencies.
Bookings of hospital beds or appointments and referrals to other departments or hospitals are complex processes. Multi-facility hospitals face huge pressure in managing various departments and other issues. This causes further delays in booking and referral activities. A work-load optimizing tool such as Computer Sciences’ Enterprise Scheduling Solution could be of immense help in such a situation.
The product has been deployed in more than 100 hospitals across Europe. With the TTSH win, Computer Sciences has now stepped into Asia. We think that given its track record, the solution should see considerable success in Asia as well.
Apart from this, Computer Sciences won a multi-year contract extension from Safety Insurance Group for an undisclosed sum.
Deal wins are catalysts for any company and Computer Sciences has no dearth of them. But the growing uncertainty regarding the U.K. National Health Service contract, intense competition in the IT and cloud computing space from both small and big players such as Accenture plc (ACN - Analyst Report) and Hewlett-Packard Company (HPQ - Analyst Report), its European exposure and strained federal budgets have prompted our bearish outlook on the stock.
Currently, CSC holds a Zacks #5 Rank (implying a short-term Strong Sell rating).
(We are reissuing this article to correct certain problems. The original article, issued June 8, 2012, should no longer be relied upon.)