DEBUG: PAGE=domain, TITLE=Procurement Outsourcing,ID=1454,TEMPLATE=subprogram
toggle expanded view
programcode = FSCPRO
programid = 109
database = f
alerts = t
neat = t
vendors = t
forecasting = t
confidence = f
definitions = t

Search within: Procurement Outsourcing:

Access our analyst expertise:

Only NelsonHall clients who are logged in have access to our analysts and advisors for their expert advice and opinion.

To find out more about how NelsonHall's analysts and sourcing advisors can assist you with your strategy and engagements, please contact our sales department here.

Subscribe to blogs & alerts:

manage email alerts using the form below, in order to be notified via email whenever we publish new content:

has Database = f has Confidence = f -- IGNORED

DXC Technology

Vendor Analysis

by Dominique Raviart

published on Oct 06, 2023

Access to this report is restricted to logged in clients with access. Login to get full access

Report Overview:

This NelsonHall key vendor assessment consists of 42 pages and provides a comprehensive and objective analysis of DXC Technology's IT and business process services offerings, capabilities, and market and financial strengths

Who is this Report for:

NelsonHall's Key Vendor Assessment on DXC Technology is a comprehensive assessment of DXC's offerings and capabilities, designed for:

  • Marketing, sales, and business managers developing strategies to target service opportunities within the BPS/IT services markets
  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for IT services
  • Consultants advising clients on vendor selection
  • Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the BPO/IT services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of DXC Technology’s offerings, capabilities, and market and financial strengths, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base, including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization.

Key Findings & Highlights:

In its latest attempt to drive organic growth and improve margins, DXC has, with effect from Q1 FY24, changed how it engages with the market by moving to an offering-led operating model. The new model moves DXC from a regional model (where the regional heads were generalists concerning offerings) to a global operating model for each business unit. DXC’s Analytics and Engineering (which has consistently been DXC’s highest revenue growth offerings) and insurance businesses were early adopters of this model.

With this new structure, DXC intends to drive more specialized (and higher margin) services and promote accountability at the margin and collection level.

Besides this significant GTM change, DXC’s strategic priorities under Mike Salvino remain to:

  • Scale up the Global Business Services (GBS) unit, which has delivered nine consecutive quarters of topline growth as of Q1 FY24 and is more profitable than Global Infrastructure Services (GIS). GBS’ GTM is based on relationships, cross-selling into GIS’ client base, benefiting from its digital portfolio (front-office custom applications, data & analytics, and agile development). Areas of focus include increasing international (i.e., non-U.S.) revenues
  • Stabilize Global Infrastructure Services (GIS), which continues to decline. With trust restored with major clients (with NPS on the rise) and red contracts renegotiated, DXC has worked on appointing new leadership and ensuring contract profitability while optimizing the utilization of its data centers. The company DXC has moved away from contracts involving its balance sheet: it no longer wants to finance the client’s purchase of new desktops or software licenses. It is also prioritizing cloud migration projects and overall project services
  • Reduce costs, primarily in the GIS segment. Having looked at office rationalization, offshoring, procurement for hardware and software, and staff optimization, DXC is now targeting data centers and subcontractors and continues to offshore its delivery
  • Reduce net debt while shifting its services portfolio. Since Mike Salvino took over in September 2019 as DXC’s CEO and President, DXC divested ~$6bn worth of assets, representing a NelsonHall-estimated revenues of $1.7bn. DXC targets $250m in divestment proceeds in FY24, primarily from data centers
  • Streamline its services portfolio, with recent moves including divesting most of its Microsoft Dynamics businesses (apart from Australia).

Login to get full access:

close