DXC Technology, the new organization created by the merger of CSC and HPE, is looking to grab impressive first year figures by positioning itself as an independent, end-to-end IT services company. It aims to deliver everything from cloud and application services, to security and mobility.
Fortified by a roster of close to 6,000 enterprise and public sector clients, the company will focus heavily on digital transformation.
In a conversation with ChannelWorld India, Marshal Correia, Managing Director, India Sales & Coverage Leader at DXC Technology reveals the company is “new, but not born yesterday”.
What is DXC Technology’s business objective for the Indian market? What are your strategic priorities?
DXC Technology, born from the CSC-HPE services merger, is an independent services company. The brand co-relates with our mission, where ‘X’ stands for the force multiplier, which is going to lead our clients through their digital transformation. Although it is a brand new company, there is a huge legacy behind it. It has now developed a new operating model—build, sell and deliver, for a seamless client experience.
We are clubbing the offerings of both the companies and have built a new set of offerings portfolio perfectly aligned to the Indian market.
We have nine offering families—including workload and cloud, security, analytics, application modernization, and consultation which help our customers with their digital journey. The aim is to bring in the best-of-breed solutions as per our clients’ requirements.
In addition to exclusive IP for sectors like insurance, healthcare and transportation, we are also diving deep into aerospace, defense, automotive, chemical, communications, media, consumer products, retail, energy, and manufacturing. We see tremendous long-term growth opportunity in India to help customers thrive on change.
How different is the DNA of this new entity as compared to HPE services and CSC?
Although this new entity has been created by merging two legacy companies, it is an independent end-to-end services company. We are typically building upon what we had previously, but are looking at enhancing our business by maximizing the scale of our partnerships in the market.
Our focus on digital transformation will give us a chance to drive more revenue from the CSC installed base. Our technology independence, extensive partner network, and talented and skilled manpower are our core differentiators. We are clubbing the offerings of both the companies and have built a new set of offerings portfolio perfectly aligned to the Indian market.
What is DXC’s services strategy and how does it stand out in the market?
The services market is fundamentally changing. DXC believes that services are going to be delivered on a much different basis, with much more of an exponential curve than a linear one.
All businesses are looking to change the dynamics of their module. They are aggressively working towards growing their revenue, mitigating risks, and cutting costs, therefore moving towards cloud and the hybrid infrastructure.
As part of the revenue growth strategy, we might go for a few ‘tuck-in’ acquisitions, which will help in expanding our digital offerings.
The power of our portfolio, the skills and the scale, the partnership framework, and being an independent technology company differentiates us from our competitors. Our goal is to produce greater value for clients, partners and shareholders, along with compelling career opportunities for our people.
How is DXC solving today’s skills gap?
Skills have always been the number one challenge for us. Most businesses in technology-intensive industries do not have the talent for digital transformation and are not ready to pursue it. Therefore we are figuring out how to get them, build them, partner with them and get them on board rapidly.
We expect to see an increase in CAGR in the digital market by 2020. Our focus on digital transformations will mean a shift in the talent mix as well. Currently, 75 percent of our current roles focus on more traditional technology solution delivery and the remaining 25 percent on next-gen technology. But in the next few years, those next-gen roles will comprise about half of our workforce.
We are strongly focusing on people, skills and new ways to source talent, especially contractors who prefer to work for themselves. The company is also investing in growing the company’s next-gen talent, which will focus heavily on the skills aspect that can deliver digital transformation projects. Additionally, we are trying to bridge the massive gap between what needs to be done and how it needs to get done.
What are your plans for the Indian market and globally?
Our strategies for the Indian and the global market are well aligned. The best part is that we have a significant global delivery footprint, which we are currently leveraging.
We are aggressively looking to provide cloud, IoT, analytics and big data to our client base.
We are thriving on change and enabling our clients for the digital journey. The new plan is to expand our IP to new sectors such as insurance and healthcare, which are now available to us and we are planning to take them to our clients.
What is DXC’s outlook for public-sector spending? What are the future technologies DXC is betting on?
Public sector has always been our forte and we continue to work on that aspect. We participate in several projects by the central government and different state governments, along with projects on e-governance, e-procurement, e-health, and Health Management Information System (HMIS). The public sector is definitely an important segment for us and we like to believe that this spending will rise in future.
Currently, we are not planning for any major M&A and would rather like to work on making DXC Technology as operationalized as possible. As a part of the revenue growth strategy, we might go for a few ‘tuck-in’ acquisitions, which will help in expanding our digital offerings.
We are also planning to streamline our structure through several moves such as the consolidation of redundant roles and improving productivity through automation. Also, we are looking forward to deliver on our promise of producing greater value for clients, partners and shareholders. To meet the growing needs of our customers and capitalize on market opportunities, we are aggressively looking to provide cloud, IoT, analytics and big data to our client base.