CSC, Global Crossing In $1.1 Billion Trade Of ServicesCSC, Global Crossing In $1.1 Billion Trade Of Services

Computer Sciences Corp. and telecommunications carrier Global Crossing Ltd. said Thursday they had signed reciprocal services deals worth an estimated $1.1 billion.

Under the first contract, a 12-year, $700 million agreement, Bermuda-based Global Crossing will run CSC's wide-area voice and data networks worldwide. The two companies also cut a 10-year, $400 million outsourcing deal, wherein CSC will manage Global Crossing's IT infrastructure, including its mainframe, midrange, and desktop computers, help-desk operations, and disaster recovery. Under the terms of that agreement, approximately 300 IT professionals will be transferred from Global Crossing to CSC.

Additionally, the companies said they will co-market their services worldwide, with Global Crossing providing WANs, IP virtual private networks, and converged data and voice services, while CSC will supply LAN management services.

The agreement is good news for Global Crossing, which, like other telecom providers, has been struggling this year. "It's a sweet deal," says Guzman & Co. analyst Pat Comack. "It's nice to see some good news out of the Global Crossing camp. With their viability in question, the fact that a company like Computer Sciences is working with them is a good sign." Shares of Global Crossing boomed following the announcement, rising 30.5% to close at $1.07.