As part of this industry focus, this post gives our take on news of DXC – a large global technology consulting organization created by a merger of Hewlett Packard Consulting division and Computer Sciences Corporation (CSC). This article from Forbes gives background on the merger.
While DXC has a few software assets, their main focus has been on providing services and consulting solutions across a wide industry base.
DXC currently employees over 170,000 employees in more than 70 countries. Additionally, they have formed partnerships with large technology companies like Oracle, SAP, Microsoft, HP and IBM.
Their reach is to provide an end to end IT services company to support all client technology needs. Since they have bought a few consulting firms, their growth has been both organic and through acquisition.
The HP Consulting and Computer Science Corporation had similar organizational and structural cultures, including a synergistic focus on IT efficiencies that the merger should not interrupt on-going business details.
The organization’s technology focus has been on application services, cloud, analytics, enterprise application, security, mobility and workplace services. DXC Technology services modernizes and digitizes client’s business process, transforming them into the digital age.
The focus of DXC will be managing clients’ IT environment, in addition to application development to support a wide breadth of IT updates and needs.
DXC provides off shore resources that reduce support and development costs.
Their infrastructure is wide enough to provide a variety of IT models. Generally, large fortune 500 companies navigate to a DXC technology solution set, that allows clients to outsource their IT environment.
The wide range of skills in modernizing applications, moving applications to the cloud, and creating a mobility architecture attracts large, risk adverse clients. This includes the ability to project manage extremely complex projects that cover many layers of technology partners.
DXC Technology will have focus implementations with large software providers like SAP, Oracle and Microsoft. This will leverage their strength in global, large projects. Medium and smaller companies may struggle under the depth that DXC Technology provides.
Meanwhile, as DXC has some business process consulting, they may partner with large business process consulting groups, like PwC, for additional services. Their focus is to drive costs and improve efficiencies in large client IT environments. However, DXC does own a few boutique consulting firms to focus on medium sized businesses and application implementations
Their cloud architecture will become a focal point of delivery, as they work with Amazon web services, HP, and ServiceNow to move customers off thick clients and reduce the cost of support and maintenance of IT.
DXC technologies large employee pool can address industry specifics, ranging from healthcare, banking, to manufacturing.
Additionally, the merger brings a strong U.S. Public Sector market, where both HP and Computer Services had large managed services momentum. We see continued growth and solutions as they win more federal bids. Government will become their largest organizational structure and revenue.
DXC technology will be a large IT transformational company servicing large companies and governments.
The sheer size will make them viable for complex bids that organizations will want to outsource. Their capability to outshore or onshore managed services and support will address complex needs from their customers.
It’s our take that no job will be too large, but some jobs may be too small for DXC. Their employee strength to support a variety of problems and geographical locations can grow revenue if harnessed well.
In summary, DXC Technology will be a huge factor in the IT transformational market, aimed specifically at large organizations and complex solutions.
Their partner network and strong employee base will address any IT problem or application for large companies.
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