Pointing to Commander's recent takeover of Volante, Gartner research vice president Jim Longwood said CSC has been struggling to boost revenue and attract more customers.

"CSC's solutions rely too much on custom services which are costly to deliver," Longwood said, pointing to a wave of consolidation in the local market including Telstra's acquisition of Kaz and the Optus buyout of AlphaWest.

Longwood said outsourcing providers will increasingly institute standardized services as they try to generate better profits from their deals and to survive as competition for business gets even tougher.

He said it is good news for customers as it is more cost effective and reflects the move away from mega deals to best-of-breed sourcing.

While CSC has a strong base of government and Defense customers, including the Australian Department of Defense and the Department of Immigration, Longwood said the company has achieved little growth from new industries.