Accenture Unloads Huge U.K. Contract

Computer Sciences (CSC Quote - Cramer on CSC - Stock Picks) was awarded a nine-year contract with the United Kingdom's National Health Service to provide IT services, the company announced Thursday. Computer Sciences is taking over the contract, which is worth as much as $3.73 billion if all options are executed, from Accenture (ACN Quote - Cramer on ACN - Stock Picks).

In 2003, Accenture was contracted to create a patient record system for the NHS. But the project has been plagued by delays and in April 2005 Accenture said it would lose money on the contract in 2007, according to wire service reports. At the time, the company set aside $450 million in reserves to cover the losses and a potential termination fee for the contract.

Shares of Accenture, which is scheduling to report earnings after the close Thursday, were up $1.63, or 5.6%, to $30.99 in early trading. Computer Sciences stock was recently up 62 cents, or 1.3%, to $48.67.