Business Management

DXC seeks lead role in new theatre of tech services

What’s in a name (to paraphrase Shakespeare - awkwardly)? Recently, on the same day as Verizon said it would bring together its Yahoo, AOL and other consumer web and media units together under the new name Oath, Computer Science Corporation, or CSC, announced in the wake of the acquisition of HP Enterprise Services that its new moniker would be DXC Technology.

The DXC naming comes at a time when the IT services sector is changing rapidly. The big American and European firms are having to adapt to the ‘cloud first’ world that simplifies deployment and, arguably, reduces the need for systems integration. At the same time they are threatened by the rise of (predominantly Indian) lower-cost providers and are having to respond to demand for digital transformation via new websites, apps and services. Yet another related change is that many of the IT services companies, such as Accenture, IBM and Deloitte, have moved into creative campaign work.

I swapped emails with DXC UK general manager Nick Wilson to better understand what is going on. My questions are in bold and the exchange has been lightly edited for flow and sense.


Is this merger a recognition that the services business has changed, and scale will be hugely important – even more so than previously?

With technology transforming business and industry at an extraordinary pace, the creation of DXC Technology as an independent, end-to-end IT services company taking clients through their digital transformation journeys, demonstrates the changing demands of clients in delivering change at scale.


How fast is the company loosening its reliance on the old multi-year outsourcing megadeals?

With a reduction in the number of megadeals the opportunity now is to deliver transformational change to organisations throughout the transformation lifecycle starting with early stage consultancy through to delivering business outcomes at scale.


Do you think that there will inevitably be more combinations in the IT services sector?

The launch of DXC Technology as the world’s leading independent IT services provider with 170,000 employees globally demonstrates the pace of change in the market and the demand from clients for services that help them thrive on change. 


How is the balance between ‘old-school’ outsourcing and true business/digital transformation shifted?

The old school outsourcing market remains an exceptionally large and attractive market, but we have seen significant growth in digital transformation and demand for technology-driven innovation through digital services.


How important are the new digital/cloud/mobile skills and to what extent do you feel the new company has them?

Those skills are increasingly sought after in the market and critical to winning and successfully providing services to our clients; both organisations prior to the merger had strong skills in these areas, but often with a different focus that has proved complementary now that we are DXC Technology.


Will you add more creative/marketing skills in the same way that, for example, IBM has with iX?

We are reviewing our marketing skills and approach to working with our clients as we move forward, drawing on the talent we have within the business following the merger.


Why is the name change occurring, what does it mean, and what do your staff think?

Our name implies change and is to help us forge a unique identity for the new organisation; we want to be recognised globally as a force multiplier, enabling clients to seize the opportunities presented by today’s rapidly changing technologies. Our employees have responded very positively to it.


Also read:
HPE-CSC services combo is all about scale
Accenture seeks second act in new theatre of technology services
Accenture scales a luminous summit with Cloud Sherpas deal
Wipro buys Appirio


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Martin Veitch

Martin Veitch is Contributing Editor for IDG Connect

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