Virginia-based Computer Sciences Corp. (CSC) recently inked a service agreement with Citizenship and Immigration Canada (CIC). The services will be provided by Computer Sciences’ Canadian arm. The agreement is for two years and has two 1-year option tenures. Financial details of the deal were not disclosed.
CIC is the department of the Canadian government that deals with immigration and citizenship. The department was established in 1994 following a reorganization within the federal government.
Under the terms of the agreement, Computer Sciences will provide extensive support to facilitate the successful submission of visa applications from Latin America. The service will also add onsite client applications, which will lead to secure transmission and documentation of the application. This will also expedite Visa processing.
Apart from these services, Computer Sciences will set up Visa Application Centers in 15 countries across Latin America to speed up the Visa processing time for CIC.
This is not the first time that Computer Sciences has provided immigration services. The company has already served the governments of the U.S., U.K., Austria, Australia and Germany among many other countries.
Apart from these deals, the company has been signing a number of insurance deals, which are expected to drive revenue growth, going forward.
The company reported decent first quarter 2012 results on the strength of its new businesses. However, we are apprehensive about intense competition in the IT and cloud computing space from both little and big players such as Accenture plc (ACN) and Hewlett-Packard Company (HPQ).
Moreover, with government orders expected to dry up to a certain extent due spending cuts and the postponement of NHS (National Health Services) realization to future quarters, things look difficult for the company. Demand for its products in Europe could remain gloomy in the near term.
Currently, Computer Sciences has a Zacks Rank of #5, implying a short-term Strong Sell recommendation.
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