Budget Group Signs Letter of Intent With Computer Sciences
13 January 1999
Budget Group Signs Letter of Intent With Computer Sciences
DAYTONA BEACH, Fla., Jan. 12 --- Budget Group, Inc.
today announced the signing of a letter of intent to enter into a
five-year global technology partnership with Computer Sciences Corporation
.
The agreement, which is expected to be finalized in March, calls for CSC
to combine its outsourcing and business transformation skills to help
streamline and consolidate Budget Group's Information Technology (I/T)
operations. CSC will also help Budget Group more effectively use I/T to
improve the company's financial performance. The initial value of the
agreement to CSC over five years will be $200 million.
"Information technology plays a critical role in our growth strategy as we
strive to better serve our customers and integrate our existing operations,"
said Sandy Miller, chairman and CEO, Budget Group, Inc. "Our partnership with
CSC allows us to leverage our technology investment to create integrated
systems across our businesses focusing on reducing costs and improving
customer satisfaction."
Added John Costanza, vice president, Information Technology, Budget Rent a
Car, "We have ambitious goals to build synergy between our business strategies
and I/T, and we liked CSC's seamless approach to providing the full span of
services and support. We view this as a true partnership because of the broad
range of business issues we'll address, and the collaborative approach we'll
take to improving Budget Group's performance."
As part of the agreement, all of Budget Group's global I/T operations
including data centers, networks, user support, applications and maintenance,
which are primarily located in Lisle, Ill., will be run and managed by CSC.
In addition, an estimated 130 Budget Group employees in locations spanning
Chicago, Indianapolis, Orlando, Dallas and the U.K. will be offered jobs with
CSC as a result of the pact.
"This is a critical contract for CSC that showcases our flexibility in
providing the right mix of consulting and I/T solutions to add real business
value," noted Van Honeycutt, CSC's president, chairman and CEO. "We're
delighted to partner with Budget on a project of this scope and size."
Computer Sciences Corporation helps clients in industry and
governments use information technology to attain strategic and operational
objectives. The company develops individualized business solutions that are
delivered by CSC's 47,000 employees in 700 offices worldwide in areas such as
information technology management consulting, systems consulting and
integration, operations support and information services outsourcing. Since
its founding in 1959, CSC has been known for its flexibility in its
relationships with clients. The company has no exclusive agreements with
hardware or software technology companies and thus is able to identify and
manage solutions specifically tailored to each client's needs. Headquartered
in El Segundo, Calif., CSC had revenues of $7.1 billion for the 12 months
ended October 2, 1998. For more information, visit the company's web site at
http://www.csc.com.
Budget Group, Inc. is a global network of vehicle rental and sales
companies operating in three principal segments: Car Rental, Truck Rental and
Car Sales. In Car Rental, Budget Group, through subsidiary companies and
their franchisees, operates Budget Rent a Car Corporation, the world's third
largest car and truck rental system, and Premier Car Rental, the nation's
third largest company serving the insurance replacement market. The company
also operates Van Pool Services, the U.S. leader in commuter van pooling
services, and Budget Airport Parking, a system of airport parking units
located adjacent to Budget Rent a Car facilities in select locations. In
Truck Rental, Budget Group operates Ryder TRS, the nation's second largest
consumer truck rental company; Budget Truck Rental, the third largest consumer
truck rental company; and Cruise America, the largest recreational vehicle
rental and sales company in North America. In Car Sales, Budget Group
operates Budget Car Sales, one of the leading independent retailers of late
model vehicles in the U.S. with both new and used car dealerships.