CSC said today that it is considering options including putting itself up for sale. Even if the outsourcing and services giant does not find a buyer, it will make sharp cuts to operations, most notably in Europe.

In a statement, the firm said: “in response to recent expressions of interest, the CSC Board of Directors has decided to explore strategic alternatives to enhance shareholder value, including a potential sale of the company.”

Separate reports in the last five months have suggested that private-equity groups have had talks with CSC in association with HP and defence contractor Lockheed Martin respectively. The Wall Street Journal today added that CSC is in talks over a possible $10.6bn or higher sale.

Some experts said that a sale to a private-equity group acting alone rather than with a commercial operation could be more attractive.

“The problem with Lockheed was that the total value proposition was difficult to break into parts,” said Matthew Josefowicz of Celent, a US-based financial research and consulting firm.

Josefowicz said that the example of business continuity firm Sungard, which was sold last March for $11.3bn, was proving an attractive case study. “With private equity you get an understanding ownership that wants cashflow but means you don’t have to explain everything to Wall Street,” he added.

At the same time, CSC said that it is implement a restructuring programme that will offset “excess capacity in certain geographies, particularly Europe”. The move will see CSC shed 4,300 staff in the next 12 months, and an additional 700 in the 12 months thereafter. The total represents about six percent of current headcount.

In the UK, CSC’s 39-year-old subsidiary employs about 10,000 staff in over 100 sites. Customers include the National Grid, BAE and the Royal Mail.