I shared my perspectives on various service provider firms many times over the years in blogs, especially at times of industry consolidation, or when new technologies and business models impact the market, as economic cycles ebb and flow, and as relationships and contracts change because of new expectations of the providers’ clients. My intent in these observations is to help enterprise clients understand how trends can affect their decision-making regarding third-party services. I now want to share my updated opinion on a service provider firm that I have closely monitored since its CEO changed in September 2019.
The third-party services industry is in the midst of a fundamental change as it pivots from building and supporting legacy systems to focusing on modernizing legacy systems and service providers develop and support their clients’ journey into the new cloud-based digital future. This headlong rush to the future and the greener pastures that it represents poses significant challenges to firms that have large legacy estates that need to be sustained and nurtured.
The DXC story
DXC Technology is a Fortune 200 global IT services company formed in 2017 when Hewlett Packard Enterprise Company (HPE) spun off its Enterprise Services business and merged it with Computer Sciences Corporation (CSC). (more…)