Science Applications International Corp, the largest privately owned IT services provider in the world, has announced a reorganization aimed at doubling the company’s revenue to $12bn in the next five years.
San Diego, California-based SAIC is to consolidate its federal government and Department of Defense business segments from February 1, 2004, the start of the company’s new financial year. News web site sandiego.com said the restructuring would result in between 200 to 300 job cuts, mainly in middle management.
Under the new structure, the company will have three main industry units: commercial, telecoms, and government. One of the problems of the existing, decentralized structure is that SAIC clients could have multiple industry groups working on the same contract, which would often compete against each other on bids.
The restructuring is being overseen by Kenneth C Dahlberg, who replaced company founder and chairman Dr J Robert Beyster as CEO in November 2003. SAIC has some 42,000 employees, and its revenue of $5.9bn in the year to January 31, 2003 ranked it as the eleventh largest IT services provider worldwide.
This article is based on material originally published by ComputerWire.