CSC estimates its share of the revenue to be approximately $125 million.

The new agreement follows and is incremental to a seven-year, $300 million information technology (IT) outsourcing agreement CSC signed with Old Mutual in 1999, under which CSC manages Old Mutual's IT infrastructure in South Africa.

Under the terms of the new agreement, CSC and Telkom will manage and operate networking services for Old Mutual and Nedbank throughout South Africa. Specific responsibilities include the creation of a single, shared data and voice network infrastructure, and the provision of data and voice services, network security and help desk support. These services will support employees located at Old Mutual and Nedbank operational centers in Cape Town, Durban and Johannesburg, and branches throughout South Africa. The companies assumed responsibility for service provision on Aug. 1, 2005.

CSC and Telkom bring a wide range of resources, knowledge and technical expertise to the engagement. CSC will manage the relationship with Old Mutual and Nedbank, act as the single point of contact for all communication and services and, together with Telkom, leverage appropriate resources and expertise to provide required services. CSC will also provide local area network management and support services at Old Mutual and Nedbank principal operational centers, and deliver help desk services from its facility in Cape Town. Telkom will be responsible for the management and support of wide area network and voice services, implementation of a centralized telephone management solution and local area network support for branch locations.

"This agreement with Old Mutual and Nedbank reinforces CSC's position as a major IT provider to the financial services sector in South Africa," said Guy Hains, president of CSC's operations in Europe, the Middle East and Africa. "We look forward to applying our expertise and experience to help Old Mutual and Nedbank achieve significant business results."

"This agreement positions Telkom as a serious player in the IT and outsourcing market," said Telkom CEO Sizwe Nxasana. "This endeavor is in line with our strategy to provide end-to-end customer focused solutions aimed at supporting the customers' business strategies and operations."

"Industry analysts predict that network convergence will become pervasive in South Africa as well as on a global scale," said Theo Nkone, CIO at Old Mutual. "This agreement is the first joint implementation between two major financial services companies in South Africa and enhances the reach and range of services Old Mutual and Nedbank can offer at its many locations."

"This new and exciting venture will allow Nedbank to demonstrate business value, reduce the risk of technology failures and leverage the buying power of the two organizations," said Willie Scholtz, divisional director of Group IT Operations at Nedbank. "Old Mutual and Nedbank will benefit from immediate and significant cost reductions and will have access to leading edge technology with no capital expenditure requirements."