Computer Sciences Corporation ( CSC - Analyst Report ) recently announced that it has won a contract extension from Switzerland-based Zurich Insurance Group Ltd. According to the contract, the financial details of which were kept confidential, Computer Sciences will continue to provide its information technology application services to Zurich for an additional 7-year period. Apart from this, the parties to the contract will be allowed to extend the term for another 3 years, if required.

Zurich Insurance Group happens to be one of the largest insurers of Switzerland. The company provides general insurance, life insurance and farmer insurance, globally. To manage its worldwide insurance operations the company has had to adopt efficient software solutions. Computer Sciences’ expertise in providing various insurance solutions helped Zurich to select its insurance suite.

Computer Sciences and Zurich have been doing business since 2004. Under this extended agreement, which will be effective from January 2013, Computer Sciences will support Zurich in expanding its business operations in Switzerland, Canada, Germany, Italy, the U.K. and the U.S.

Insurance plays a vital role in providing a sense of security to people. With economic recovery underway, people are again looking to put their money into innovative life and annuity products in order to secure their incomes and lives. Insurance carriers are trying to tap this demand through their new life and annuity policies. Computer Sciences has been prudent in unveiling new products and solutions, which have helped insurance carriers in business development.

Computer Sciences has been seeing a series of insurance deal wins, indicative of the efficacy and popularity of its products. In August, Aviva India, an arm of U.K.-based Aviva Group engaged in the business of life insurance, opted for Computer Sciences’ Integral insurance suite, to boost its performance across branches.

Though intense competition in the IT and cloud computing space from both small and big players such as Accenture plc ( ACN - Snapshot Report ) and Hewlett-Packard Company ( HPQ - Analyst Report ) , European exposure and strained federal budgets are concerns, the first quarter earnings beat and resolution of the NHS deal issue makes us bullish on the shares.

Currently, Computer Sciences Corporation holds a Zacks #2 Rank (implying a short-term Buy rating).