DXC Technology Bundle
What is DXC Technology Company?
DXC Technology is a global IT services and consulting firm formed on April 3, 2017, by merging Computer Sciences Corporation and Hewlett Packard Enterprise's Enterprise Services business. This created a major independent IT services provider.
The company was established with a clear mission to guide clients through digital transformation and optimize their operations across diverse technology landscapes. Its initial setup included global headquarters in Tysons, Virginia, and a listing on the New York Stock Exchange.
DXC Technology's foundational strategy focused on accelerating digital transformation for its clients. It aimed to deliver comprehensive solutions across the Enterprise Technology Stack, emphasizing security and scalability in various cloud environments. The company sought to leverage analytics to achieve tangible business outcomes, boost performance, and enhance customer experiences. A key aspect of its offering includes tools like the DXC Technology BCG Matrix, designed to help businesses analyze their product portfolio.
As of fiscal year 2024, DXC Technology reported revenues of $13.67 billion. For the fiscal year ending March 31, 2025, its annual revenue was $12.87 billion, marking a decrease of 5.82%. Despite these revenue shifts, the company maintains a significant presence, serving numerous clients in over 70 countries with a workforce of approximately 120,000 to 130,000 employees in early 2025.
What is the DXC Technology Founding Story?
DXC Technology's journey began on April 1, 2017, marking a significant moment in the IT services landscape. This new entity emerged from the strategic combination of Hewlett Packard Enterprise's Enterprise Services division and Computer Sciences Corporation (CSC), creating a powerhouse with deep industry roots.
The Genesis of DXC Technology
The official launch of DXC Technology in 2017 was the culmination of a merger between Hewlett Packard Enterprise's Enterprise Services business and Computer Sciences Corporation (CSC). This union brought together decades of experience and a vast client network.
- The merger was announced in May 2016 and finalized in April 2017.
- DXC Technology's origins can be traced back to CSC, founded in 1959.
- Mike Lawrie, previously CEO of CSC, led the newly formed DXC Technology.
- The company's name, 'DXC,' was chosen to symbolize transformation.
The history of DXC Technology is intrinsically linked to its predecessor, Computer Sciences Corporation (CSC), which was established in 1959 by Roy Nutt and Fletcher Jones in El Segundo, California. CSC initially focused on developing software for manufacturers, laying the groundwork for its future in IT services. The strategic decision to merge CSC with Hewlett Packard Enterprise's Enterprise Services business was aimed at creating a formidable independent IT services company. This move was designed to leverage scale, enhance technological capabilities, and capitalize on a combined management expertise. The transaction involved a cash payment of $3 billion to HPE, along with DXC assuming $600 million in net pension liability and $400 million of existing debt. A notable aspect of this integration was the minimal client overlap between the two entities, estimated at just 15%, which presented substantial opportunities for cross-selling and expanding market reach. This strategic alignment was a key factor in shaping the Mission, Vision & Core Values of DXC Technology as it embarked on its transformation journey.
DXC Technology SWOT Analysis
- Complete SWOT Breakdown
- Fully Customizable
- Editable in Excel & Word
- Professional Formatting
- Investor-Ready Format
What Drove the Early Growth of DXC Technology?
The early phase of DXC Technology's existence was defined by the significant task of integrating two large entities, CSC and HPE Enterprise Services. This period saw the company establish a substantial global presence with 170,000 employees serving clients in 70 countries.
Post-Merger Integration and Optimization
Following its formation, DXC Technology initiated a strategic three-year plan to streamline its global operations. This included consolidating its office footprint in India, reducing the number from 50 to 26, and implementing workforce adjustments. In July 2017, the company announced a reduction of approximately 5.9% of its workforce, impacting around 10,000 employees.
Strategic Acquisitions for Capability Enhancement
DXC Technology pursued strategic acquisitions to broaden its service offerings and technological capabilities. Key acquisitions included Tribridge and its affiliate Concerto Cloud Services in July 2017 for $152 million, followed by Molina Medicaid Solutions, Argodesign, and two ServiceNow partners in 2018. The acquisition of Luxoft in January 2019, where DXC secured an 83% ownership stake, was particularly significant, bolstering its digital transformation and advanced engineering services.
Focus on Digital Transformation and IT Modernization
During its initial growth phase, DXC Technology concentrated on modernizing critical IT systems for global enterprises and assisting clients in their digital transformation journeys. The company's combined initial revenues upon formation reached $25 billion, though the integration of diverse corporate cultures and systems presented considerable challenges.
Navigating Integration Challenges and Strategic Pivots
The early years were marked by intensive restructuring efforts to harmonize the operations of the merged entities. This period also laid the groundwork for a strategic shift towards higher-growth digital services, a direction that would continue to shape the company's Marketing Strategy of DXC Technology and its market positioning.
DXC Technology PESTLE Analysis
- Covers All 6 PESTLE Categories
- No Research Needed – Save Hours of Work
- Built by Experts, Trusted by Consultants
- Instant Download, Ready to Use
- 100% Editable, Fully Customizable
What are the key Milestones in DXC Technology history?
The Brief History of DXC Technology since its 2017 formation is characterized by significant strategic moves and adaptation to the dynamic IT sector. Key innovations include integrating and optimizing front and back office processes through agile automation and migrating legacy applications to secure multi-cloud environments. The company's journey has involved substantial restructuring and navigating market challenges.
| Year | Milestone |
|---|---|
| 2017 | DXC Technology was formed through the merger of CSC and HPE Enterprise Services. |
| 2019 | The company acquired Luxoft for $2 billion, expanding its digital transformation capabilities. |
| 2019 | Mike Salvino was appointed President and CEO, succeeding Mike Lawrie. |
| 2021 | Atos ended talks for a potential acquisition of DXC Technology. |
| 2023 | Raul Fernandez was named President and CEO, becoming permanent CEO in February 2024. |
DXC Technology's innovations have centered on enhancing client digital transformation through agile process automation and secure multi-cloud management. The company has also focused on adapting legacy applications for modern cloud environments.
Agile Process Automation
DXC has focused on integrating and optimizing front and back office processes using agile automation techniques.
Legacy Application Modernization
A key innovation involves adapting and migrating legacy applications to cloud environments.
Secure Multi-Cloud Management
The company has developed capabilities for securely managing complex multi-cloud setups for its clients.
Digital Transformation Expansion
The acquisition of Luxoft significantly expanded DXC's digital transformation offerings, particularly in analytics and engineering.
AI Adoption Focus
Under new leadership, there is a strong emphasis on driving modernization and AI adoption for clients.
Vertical Market Strategy
The company has strategically realigned its business operations into five key verticals to better serve specific industries.
DXC Technology has faced significant challenges, including market competition and the complexities of integrating diverse corporate cultures post-merger. The company also experienced leadership transitions and a proposed acquisition that did not materialize.
Market Competition
The company has contended with strong competition from established IT service providers like IBM and Accenture.
Integration and Restructuring
Significant restructuring was required to integrate the cultures and systems from the CSC and HPE Enterprise Services merger.
Divestiture of US Public Sector
In 2018, DXC split off its US public sector segment, creating Perspecta Inc.
Unrealized Acquisition
In February 2021, Atos ended talks for a proposed acquisition of DXC Technology valued at approximately $10 billion.
Financial Performance
The company's financial results have reflected these challenges, with a reported net loss of $639 million in fiscal year 2024.
Portfolio Optimization
Efforts have been made to optimize the company's portfolio and cost structure to enhance its competitive position.
DXC Technology Business Model Canvas
- Complete 9-Block Business Model Canvas
- Effortlessly Communicate Your Business Strategy
- Investor-Ready BMC Format
- 100% Editable and Customizable
- Clear and Structured Layout
What is the Timeline of Key Events for DXC Technology?
The journey of DXC Technology is a story of significant mergers and strategic evolution within the IT services sector, tracing its roots back to the founding of Computer Sciences Corporation (CSC) in 1959. This timeline highlights key moments in the company's formation and growth, leading to its current position in the market.
| Year | Key Event |
|---|---|
| 1959 | Computer Sciences Corporation (CSC), a predecessor to DXC, is founded by Roy Nutt and Fletcher Jones. |
| 1968 | CSC becomes the first software company to go public. |
| May 2016 | The merger between CSC and Hewlett Packard Enterprise's Enterprise Services business is announced. |
| April 1, 2017 | DXC Technology officially launches as a new company, formed by the merger of CSC and HPE Enterprise Services. |
| April 3, 2017 | DXC Technology begins trading on the New York Stock Exchange under the ticker symbol DXC. |
| July 2017 | DXC acquires enterprise software company Tribridge and its affiliate Concerto Cloud Services for $152 million. |
| 2018 | DXC acquires Molina Medicaid Solutions, Argodesign, BusinessNow, and TESM. |
| June 2018 | DXC splits off its US public sector segment to create Perspecta Inc. |
| January 2019 | DXC acquires Luxoft, expanding its digital capabilities. |
| September 2019 | Mike Salvino is named President and CEO of DXC Technology. |
| February 2021 | Atos ends talks for a potential acquisition of DXC. |
| December 2023 | Raul Fernandez is appointed Interim President and CEO, replacing Mike Salvino. |
| February 2024 | Raul Fernandez is appointed permanent President and CEO of DXC Technology. |
| March 31, 2025 | DXC Technology reports annual revenue of $12.87 billion for the fiscal year. |
| May 14, 2025 | DXC Technology reports fourth quarter and full year fiscal 2025 results, with Q4 FY25 total revenue of $3.17 billion. |
Strategic Realignment for Growth
DXC Technology has strategically realigned its operations into five key verticals: Financial Services, Automotive and Manufacturing, Healthcare and Life Sciences, Airlines, and the Public Sector. This move is designed to enhance focus and service delivery within these critical industries.
Focus on Modernization and AI
The company is prioritizing modernization and AI adoption for its clients, aiming to guide them through their digital transformation journeys. This includes addressing both foundational infrastructure needs and advanced AI applications.
Financial Projections for FY2025
For the full fiscal year 2025, DXC projects total revenue between $12.74 billion and $13.02 billion. The company is targeting an adjusted EBIT margin of 6.5% to 7.0% and anticipates generating approximately $450 million in free cash flow.
Analyst Sentiment and Future Strategy
Analyst consensus for DXC Technology stock in 2025 is generally a 'Hold', with an average price target of $17.00. The company's strategy involves optimizing its portfolio and cost structure to remain competitive. This approach aligns with the Growth Strategy of DXC Technology.
DXC Technology Porter's Five Forces Analysis
- Covers All 5 Competitive Forces in Detail
- Structured for Consultants, Students, and Founders
- 100% Editable in Microsoft Word & Excel
- Instant Digital Download – Use Immediately
- Compatible with Mac & PC – Fully Unlocked
- What is Competitive Landscape of DXC Technology Company?
- What is Growth Strategy and Future Prospects of DXC Technology Company?
- How Does DXC Technology Company Work?
- What is Sales and Marketing Strategy of DXC Technology Company?
- What are Mission Vision & Core Values of DXC Technology Company?
- Who Owns DXC Technology Company?
- What is Customer Demographics and Target Market of DXC Technology Company?
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.