DXC Technology: Channel Profile & Services

DXC Technology is a Fortune 500 IT services company. DXC is the product of a 2017 powerhouse merger between Hewlett Packard’s enterprise services unit and Computer Sciences Corp. (CSC) that has struggled to be profitable.

DXC’s size and managed services reputation are strong — with 137,000 employees supporting nearly 6,000 clients in 70 countries through workplace/business process, IT outsourcing, analytics, cloud and application services.

DXC is targeted for a turnaround through new C-suite leadership, sell-offs, a focus on its existing customer base and small but steady growth in emerging sectors.

This profile tells that story while focusing on DXC’s services, target markets, user opinion, industry recognition and current financial position.

Courtesy of DXC Technology. Unauthorized use not permitted.

Specialties

Rooted in its HP enterprise foundations, DXC is built on its managed workplace, IT and data center services. It is a managed service provider (MSP) for Azure, AWS, VMware, Oracle, Google and other providers and a key information technology outsourcing (ITO) partner for nearly all of the leading U.S. airlines, auto manufacturers and aerospace and defense firms. DXC promotes nine key service areas:

• Analytics

• Cloud

• IT outsourcing

• Application services

• Consulting services

• Modern workplace

• Business process services

• Enterprise and cloud apps

• Security

From its workplace core, DXC seeks to transform lower-progress areas and continue recent small-growth shifts in analytics, application services, cloud and IT outsourcing. DXC divides its enterprise technology stack into global business services and global infrastructure services.

Services

DXC aims to offer managed services across the lifecycle through the following services:

Analytics

DXC’s data analytics offerings span process-wide strategy and insights as well as data architecture, management and migration. Leveraging machine learning, artificial intelligence (AI) and its relationships with its tech provider network, DXC helps its clients modernize through:

• Analytics and platform solutions: Delivering full-service, rapid deployment of business insights and optimized workload through AI, Internet of Things (IoT), app integration and hybrid cloud solutions

• Modernization and migration: Supporting aging enterprise data warehouse (EDW) and business intelligence (BI) environments by optimizing workload, platforms, deployment options and costs

• Spend analytics: Aggregating data to support procurement, improve processes, embed prediction and generate savings

• Robotic drive: Supporting engineering and testing for autonomous vehicle R&D

Cloud

Next-gen cloud computing environments through public, hybrid and multi-solution architecture are service target areas for DXC. Managed cloud solutions include Microsoft Azure, AWS and Google Cloud, with these same solutions driving its platform-as-a-service (PaaS) for SAP offerings. DXC promotes its cloud transition, integration and infrastructure-as-a-service (IaaS) capabilities. 

IT outsourcing

DXC is a significant ITO industry partner, driving access, speed, performance, security, scalability and cost-effectiveness. In addition to cloud solutions for corporate “IT estates,” the company remains strong in its foundation services:

• Computer and data center

• Storage and backup

• Networking

• Mainframe

• Business continuity 

Application services

DXC develops, modernizes, tests and manages client applications, including custom-made, cloud-native and established. It supports apps for Oracle, SAP, SalesForce, ServiceNow and other leading names. Through the following service areas, the company delivers the app lifecycle from advisory to automation to testing-as-a-Service (TaaS) to performance management:

• Modern application development

• Application modernization

• Testing and digital assurance

• Application management

Modern workplace

Workforce transformation through support services, device management, intelligent collaboration and asset management is a key target for DXC. The company looks to build off its historical workplace portfolio — 1,000 customers in nearly 70 countries — and meet modern needs through AI, 5G and diverse cloud strategies as work from home (WFH) becomes a permanent option for business in 2021 and beyond. DXC’s Industry-specific support includes wearable devices, mobile and IoT solutions. 

Business process services

DXC’s business process services (BPS) supports more than 185 clients in over 100 countries process high-volume credit, debit and payroll transactions, while reducing call volumes. Cloud, robotic process automation (RPA), AI and agile process automation (APA) are deployed to increase BI, while reducing risks, costs and error.

Security

Evergreen security management, AI-driven security platforms and vendor-neutral support mark DXC’s security solutions. Specific services include:

• Cyber defense

• Secured infrastructure

• Digital identify

• Data protection

Industry players can subscribe to monthly Threat Intelligence Report through DXC Labs | Security for timely intelligence on threats, breaches, cybercrimes and nation state activities. DXC’s March report highlighted malware upticks and device targeting.

Consulting services

DXC’s consulting services target digital offerings including platforms and enterprise asset management. The company serves over 200 Fortune 500 customers with expertise across all major industries in 70 countries. Digital rail transformation is among its specialty services.

Target markets

Economy-critical industries are part of DXC’s client base, including those in the public and private sector. DXC’s systems, platform and data management are delivered to leading clients in these segments:

• Healthcare and Life Sciences: 80% of the top 15 U.S. Fortune 500 health care organizations and all U.S. Fortune 500 pharma companies

• Banking and capital markets

• Aerospace and defense: Multiple manufacturer’s including a leading European A&D company

• Consumer and retail

• Insurance: More than 80% of Fortune’s Global 500 insurers in P&C, life and wealth, reinsurance, brokerage and self-funded insurance

• Manufacturing and automotive

• Travel, transportation and hospitality: For leading U.S. airline, public transportation and hotels systems, plus global courier, rail, transportation and logistics

• Energy, utilities, oil and gas: DXC supports large, leading providers

• Technology, media and communications

• Public sector: DXC’s customer base spans taxes, trade, immigration and the environment

User opinion

Gartner’s Peer Insights rates DXC Technology 4.2 out of 5 stars overall based on over 200 responses across 23 of its market categories. DXC has the most reviews and products in:

• Managed Workplace Services (Worldwide, Asia/Pacific, Europe and North America): 45 reviews, 3.5-5 stars

• Data Center Outsourcing and Hybrid Infrastructure Managed Services (Global, Asia/Pacific, Europe and North America): 42 reviews ranging from 3.4-4 stars

• Data and Analytics Service Providers: 29 reviews, 4.4 stars

Other categories ranked for DXC include Application Testing Services, Cloud Computing, Public Cloud IaaS and Managed Services, Managed Mobility and Managed Security Services, various Policy Administration Systems and application and/or cloud services for Oracle and SAP/SAP S-4HANA.

Industry recognition and partnerships

DXC is a Fortune 500 company and has over 250 global Partner Network relationships, including these 15 key ones: Amazon Web Services, AT&T, Dell EMC, HCL, Hitachi Vantara, HP, HPE, IBM, Lenovo, Micro Focus, Microsoft, Oracle, PwC, SAP and ServiceNow. 

DXC’s industry recognition includes the following:

• Microsoft: Dynamics Services Global Partner of the Year and 20 consecutive years as Inner Circle Member

• Everest Group: ServiceNow Services PEAK Matrix Assessment 2021

• Oracle: One of five fully certified MSPs

• IBM: Top 5 Global System Integration Partner

• ISG: Market Research Leader of SAP HANA services

• Nelson Hall: Salesforce and NEAT Evaluation Report: Agile Development and DevOps Services

• Management Consultancies Association (MCA): Awards for innovation and digital technology

Financial position

DXC Technology Company (NYSE: DXC) has trouble being profitable, but it is in the midst of a self-proclaimed turnaround through modernization, debt reduction, core customer support and key business area growth. A series of positive leadership changes began in late 2019 with new CEO Mike Salvino, a former Accenture executive.

DXC reported Q3 2021 revenue of $4.29 billion, a decline from the two prior quarters ($4.55 billion and $4.5 billion). This nonetheless outperformed analyst expectations due to its contract backlog and 1.13 book-to-bill ratio, a sign of new contract growth compared to older contract revenue. CEO Salvino cites DXC’s booking ratio as well as modest growth in “enterprise technology stack” as an indicator of its Atos offer rejection — and a sign of progress as the company heads into the end of its fiscal year.

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