DuPont Co. on Wednesday said it will contract out computer work to Computer Sciences Corp. and Andersen Consulting in an arrangement that the leading chemical company valued at more than $4 billion over 10 years.
The deal will move almost three-quarters of DuPont's 4,200 information systems workers to the two contracting companies.
The nation's largest chemical company said the deal will help save an estimated 5% to 10% on the management of the technology for its manufacturing, marketing, distribution and customer service operations.
Van B. Honeycutt, president and chief executive of El Segundo-based Computer Sciences, expects an earnings boost for the company.
"I think after a period of 12 months or so it'll be up and running, and we'll add value for shareholders of CSC," Honeycutt said.
Computer Sciences' portion of the $4-billion deal is proportional to the share of DuPont jobs it will take on--more than five times the positions to go to Chicago-based Andersen Consulting, he said. Andersen Consulting also has offices in El Segundo.
Executives from the three companies declined to further specify how Computer Sciences and Andersen Consulting would each earn from the deal.
Shares of Wilmington, Del.-based DuPont lost $2.50 to $92.625 and Computer Sciences shares lost 50 cents to $84, both on the New York Stock Exchange.
DuPont said the arrangement differs from the type of "outsourcing" deals done by auto makers and other companies looking for ways to cut costs. Unions have criticized outsourcing as a threat to job security.
Of the affected DuPont workers, 2,600 will be offered jobs at Computer Sciences.