CSC Replaces Managed IT Services Leader After MSP Setbacks

CSC Replaces Managed IT Services Leader After MSP Setbacks

Computer Sciences Corp. Company LogoComputer Sciences Corp. revealed setbacks in its managed IT services business in August 2011. Now, CSC is making changes. Russ Owen is stepping down as CSC's president of the Managed Services Sector. CSC says Owen is staying on as president of strategic account development. But that sounds like creative spin. In reality, Owen and CSC have signed a separation agreement and he'll head for early retirement in June 2012, according to an SEC filing. So, who will head CSC's managed services push?

For now, the answer is Peter Allen, head of CSC's global sales and marketing. In addition, he assumes the role of acting president of Managed Services Sector. But that "acting" title begs the question: Will Allen lead CSC's managed services efforts for the long haul, or is CSC scouring the market for a new managed services guru? The press release doesn't say. I've reached out to CSC for comment.

Meanwhile, CSC claimed to be making progress with its managed services business in early September, noting that it won a five-year contract with Ingalis Shipbuilding.

But CSC has had considerable managed services problems. The trouble came to light in August 2011. That's when CSC announced quarterly results that described a few managed services issues. Then, we took a closer look at an August SEC filing -- where CSC explained a range of managed services problems. I re-read the document several times and still couldn't understand some of CSC's explanations.

Now, Allen is running CSC's managed IT services strategy -- but his title includes "acting" president. Strange.

Meanwhile, the press release about Russ Owen's new position doesn't mention that he's retiring from the company in 2012. The deeper details surfaced in an SEC filing, which states:

"Executive shall be employed by the Company until June 22, 2012.  During the Transition Period (as defined below), Executive shall not be terminated by the Company or any successor except for Cause (as defined below).  Effective as of June 22, 2012 (the “Separation Date”), the Executive will terminate his employment with the Company on account of early retirement, will no longer be an employee of the Company and will terminate from all positions he holds with or at the direction of the Company, whether as an officer, director, manager, committee member or otherwise."
Translation: Owen is essentially in a new CSC position for nine months then heading for the exit, and Peter Allen is "acting" president of CSC's managed IT services push. In my opinion, CSC needs to publicly clarify if that means Allen will be in that position for the long haul -- or if more help is on the way. If updates arrive I'll share them.
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