<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED BALANCE SHEETS OF POLICY
MANAGEMENT SYSTEMS CORPORATION AS OF AND FOR THE NINE MONTHS ENDED SEPT 30, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                            8030
<SECURITIES>                                      2400
<RECEIVABLES>                                   103743
<ALLOWANCES>                                       806
<INVENTORY>                                          0
<CURRENT-ASSETS>                                160708
<PP&E>                                          230093
<DEPRECIATION>                                  116589
<TOTAL-ASSETS>                                  548372
<CURRENT-LIABILITIES>                            71159
<BONDS>                                          57750
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           182
<OTHER-SE>                                      351136
<TOTAL-LIABILITY-AND-EQUITY>                    548372
<SALES>                                         417513
<TOTAL-REVENUES>                                417513
<CGS>                                                0
<TOTAL-COSTS>                                   359066
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                3544
<INCOME-PRETAX>                                  56801
<INCOME-TAX>                                     20363
<INCOME-CONTINUING>                              36438
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     36438
<EPS-PRIMARY>                                     1.94
<EPS-DILUTED>                                     1.94