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CSC is embarking on a third transformation project to
standardize their bank connectivity. CSC is rolling out
XML with their banking partners around the world and
migrating to SWIFTNet FileAct connectivity. With the
XML standards already established in Asia Pacific, CSC
is already ahead of the game. Despite unique technology
challenges, CSC has achieved far-reaching benefits with
its bold transformation vision and productive partnership
with Citi.
Asia Pacific Sector Insights
| Computer Sciences Corporation
The Result
CSC gained significant financial benefit from
eliminating the previous method of funding
entities through ad hoc bilateral intercompany
loans which all required hedging. The cost of
funding was also significantly reduced through
the offset of short positions against long to
eliminate the previously expensive in-country
overdrafts with local banks that had been the
primary working capital funding option available
to treasury. Now with the regional pool, Citi
provides a fully automated solution that
eliminates intercompany loans, maximizes the
use of internal sources of cash and eliminates
the need to hedge FX exposures incurred by
cash rich entities bilaterally funding temporarily
short entities.
To date, CSC has achieved over 80% of its
ambitious overall transformation program and
recently went live with the regional cash pool
harnessing greater financial flexibility. Looking
ahead, CSC is embarking on a third
transformation project to standardize their bank
connectivity. CSC is rolling out XML with their
banking partners around the world and
migrating to SWIFTNet FileAct connectivity.
With the XML standards already established in
Asia Pacific, CSC is already ahead of the game.
Despite unique technology challenges, CSC has
achieved far-reaching benefits with its bold
transformation vision and productive
partnership with Citi.
With the automated regional cash pool, CSC
centralized over 60% of its regional cash and
close to 100% of cash from fungible markets
into a central pool of liquidity. This liquidity pool
is fully accessible by treasury in India and
London on a daily basis. Citi’s multi-entity,
multi-currency notional pool has provided
flexibility, visibility and control as well as
significantly reducing costs.
