Outsourcing Contract: Software Maintenance Specialists in Santa...

Outsourcing Contract: Software Maintenance Specialists in Santa Ana said it has signed an agreement with health care company McGaw Inc. in Irvine to provide computer outsourcing services.

In outsourcing, a company contracts with a third party for the operation of a corporation’s computer network and data-processing needs.

Mike Winder, president of SMS, says outsourcing often leads to lower costs because his company can share the overhead expenses of operating a computer center among a number of clients that otherwise could not afford such a large system.

More than 30 companies in Southern California have signed outsourcing contracts with SMS, including the Denny’s restaurant chain, TRW Business Credit Services, Lucas Aerospace, Catalina Sportswear, Children’s Hospital of Los Angeles and City of Hope Medical Center.