Merger, DXC

‘New. But Not Born Yesterday’. Strapline of DXC Is Identity and Proposition

‘Thrive on change’ is the mantra of DXC, the $25 billion IT services company created from the merger finalized today between CSC and the Enterprise Services division of Hewlett Packard Enterprise. The business refrain is accompanied by a strapline of “new, but not born yesterday”, which neatly sums up its identity and points up a proposition to set it apart from a crowded digital field.

“Together with our partners, we help clients harness the power of innovation to create new business outcomes,” said Mike Lawrie, chairman, president and CEO of DXC. “Our technology independence, extensive partner network, and world-class talent are core differentiators. We begin the new chapter in our journey knowing that collectively we have met the challenges of innovation many times before, and with a clear and confident vision for navigating the future.”

The bullet points of the deal announced at the launch were:

  • Annual revenues of $25 billion with nearly 6,000 enterprise and public sector clients in 70 countries
  • Focus on creating greater value for clients and partners
  • 170,000 staff, committed to investing in and growing next-gen talent
  • Extensive partner network to drive collaboration and leverage technology independence
  • Network of next-generation delivery and data centers to provide global scale

Rachael Stormonth, executive vice president of analyst group Nelson Hall, said the launch marks the biggest and most exciting merger in tech history with the creation of a $25 billion services company. “It has the scale and reach to fulfill customer need”, she noted, but argued that each partner’s own, recent experience of digital transformation would be even more compelling for customers.

“Both [CSC and HPE] have had their own nettle to grasp”, in the shift from asset-intensive outsourcing deals to the new market realities of 21st century requirements of business, commented Stormonth. “Both have adapted their portfolio to the new realities and are leaner and fitter as a result”, she added.

It is this mix of experience and competence in dealing with vast IT infrastructures, coupled with the fresh outlook necessary to capitalize on digital opportunity that promises to give DXC an edge. On the company’s new website, there are customer stories across a breadth of industries that provide clues as to how this dual perspective might be accomplished.

A simple and modern “one patient/one record” for all registered citizens and their healthcare providers in the Kingdom of Brunei is one such use study. Brunei’s four hospitals and 60 health centres and clinics are now connected, providing the ability for clinicians to support patients anytime, anywhere. Plus digital facilitates a better use of medical data with improved patient care and safety.

UK train operator Network Rail had a similarly complex transformation to accomplish when updating from arduous paper-based processes to easy-to-use digital app. Digital transformation has delivered cost savings through a 40% reduction in administration requirements and paper workflows, and improved operational efficiencies and increased public safety.

As a fresh new entity, DXC has a major opportunity to reinvent itself to be a credible scale, modern, global partner with core legacy strengths. At a recent investor day, Lawrie remarked that the twin capabilities of scale and skills would be critical axes for any customer embarking on the digital journey. DXC has both of these in spades, and they are anchored in cloud-based, secure, and mobile-friendly infrastructures.

With experience and modernity on its side, DXC is setting the bar high in the digital delivery arena, and customers will be watching with fresh anticipation.

Helen Beckett

Author: Helen Beckett

Helen Beckett is the Community Manager of the Business Value Exchange. She has been a writer and editor for over 20 years and takes a particular interest in the challenges facing the CIO in today’s business climate.