The would prove challenging to convince sponsors

The Global Infrastructure Services (GIS) division, CSC’s business unit wanting to undertake the capital project, faces a number of challenges especially in seeking funding. It would prove challenging to convince sponsors to undertake such a high value project in light of CSC’s current difficulty in effectively managing its cost structure together with issues of organizational and operating-model adjustment. CSC also faces significant continued budget uncertainty following recent contract write-offs in both the UK and the U.S. resulting in major impairment and restructuring charges. The project faces leadership capability issues, accountability and governance challenges that may hinder attainment of improved performance, delivery of greater value to shareholders and positioning of CSC for the future. Innovative and charismatic leadership is essential to enable CSC innovate, compete and substantially improve its profitability. This is necessary considering that the company underperformed significantly on FY12.

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