<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF OPERATIONS AND CONSOLIDATED BALANCE SHEETS OF POLICY
MANAGEMENT SYSTEMS CORPORATION AS OF AND FOR THE QUARTER ENDED MARCH 31, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                            9993
<SECURITIES>                                         0
<RECEIVABLES>                                   121398
<ALLOWANCES>                                      1402
<INVENTORY>                                          0
<CURRENT-ASSETS>                                167709
<PP&E>                                          244067
<DEPRECIATION>                                  127879
<TOTAL-ASSETS>                                  567300
<CURRENT-LIABILITIES>                           106458
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           182
<OTHER-SE>                                      370443
<TOTAL-LIABILITY-AND-EQUITY>                    370625
<SALES>                                              0
<TOTAL-REVENUES>                                155256
<CGS>                                                0
<TOTAL-COSTS>                                   138674
<OTHER-EXPENSES>                                    58
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                1217
<INCOME-PRETAX>                                  16161
<INCOME-TAX>                                      6069
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     10092
<EPS-PRIMARY>                                      .56
<EPS-DILUTED>                                        0