Under the agreement, CSC will continue to provide infrastructure systems and support services for more than 400 Kmart and Kmart Tyre and Auto retailers.
This award extends a contract CSC signed in 2004 with Coles Myer, which owned Kmart at the time.
Nick Wilkinson, president of CSC Australia said to win the deal, the company built on its existing good relationship with Coles and introduced new features within its contract.
"CSC introduced closer alignment between CSC's support services and Kmart's business operations, taking more accountability for any impacts CSC could have on the business," he said.
"CSC also committed to reviewing different aspects of the IT technical environment on a regular basis to bring further business improvement and innovation to Kmart's ongoing IT operations.
"This is particularly important given the pressure that retailers like Kmart see themselves under in the current economic environment," he added..
Wilkinson said CSC was also able to drive costs down by refreshing its technology and right-sizing its solutions for the scale of the Kmart business.
Ian Baily, chief operating officer, Kmart Australia the professionalism and quality of service from CSC was a contributing factor in the decision.
CSC is a leading provider of IT services in Victoria with a portfolio of clients that include ITSS, Powercor-Citipower, D&B Australia and Tenix Solutions.
Examples of other deals the company made this financial year include the Department of Immigration & Citizenship ($110 million), BHP Billiton ($100 million) and Western Power ($11.8 million and $15.4 million).