DXC launches as largest IT services provider in A/NZ

By Dylan Bushell-Embling
Friday, 07 April, 2017

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IT services giants CSC and the Enterprise Services division of HPE have completed their merger and relaunched the combined company as DXC Technology.

The new company will have annual revenues of around US$25 billion, with a client base of over 6000 enterprise and public sector organisations in 70 countries worldwide.

In Australia and New Zealand, DXC will have over 3000 clients across the government, health care, insurance, banking and capital markets. The company said the merger will make it the largest IT services provider in A/NZ, with around 10,000 staff.

“DXC Technology represents a new beginning for our clients, partners and employees in Australia and New Zealand, and for our global community,” said DXC Technology Australia and New Zealand’s new managing director, Seelan Nayagam.

IBRS advisor Dr Wissam Raffoul noted that CSC and HPE have separately been serving the Australian market for over 30 years, with services including outsourcing, managed services and consulting.

“In the new company DXC technology plans to deliver the same services, with specific focus on being technology independent,” Raffoul said.

But he noted that the details of the merger revealed so far contain little for existing customers to get excited about.

“There are no announcements to new IT services, nor different modes of operations to deliver services to the clients at a lower price, enhanced quality or at a faster pace. This looks like a miss, especially as most clients want to be served under as-a-service arrangements and at service levels that reflect business operations,” he said.

“Given that CSC and HP-ES were individually large and have claimed technology independence, why clients, satisfied with the services of large companies, should be excited to get the same services from an extra-large company, is not clearly articulated nor demonstrated, for now, at least.”

The new company is also launching with more than 250 partner network relationships, including 14 strategic partners such as AWS, IBM, HPE, HP, IBM, Microsoft, Oracle, SAP and ServiceNow.

CSC and HPE first announced plans for the merger in May last year. They unveiled the name for the combined company in February.

Image credit: ©iStockphoto.com/ayzek

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