Troubles continue to mount for Global Crossing, with news today that Computer Sciences Corporation (CSC) was terminating its information technology (IT) outsourcing agreement with Global Crossing. The $400 million deal, announced on November 8 last year but yet to be implemented, will be dead from March 1 2002.
Officially, the out-sourcing deal is being terminated by mutual agreement “following a determination that the agreement no longer serves the interests of both companies,” but it is hard to believe that the sharp deterioration in the finnacial stability of Global Crossing was not largely to blame.
The CSC decision is bound to increase pressure on SWIFT to re-consider its own out-sourcing deal with Global Crossing.