An Info-Tech Haven Called Outsourcing

Slashed IT budgets, the bane of most technology companies, have produced strong gains for the likes of IBM and EDS

The people at Computer Sciences Corp. won't soon forget Mar. 16, 2001. On that day, the technology-services giant missed its first-quarter profit targets by 60%, citing a massive drop-off in demand. That prompted a flurry of analyst downgrades and a sell-off of CSC's shares that wiped out $3.6 billion of market value in one day. But when CSC (CSC ) faced Wall Street analysts in a conference call three days later, it could point to one line of business that remained strong: outsourcing.

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