IT Services

Why CSC and HPE Merger Might be a Balancing Act?

After the news broke out that CSC and HPE services are coming together, the IT industry was busy making its own predictions about how this partnership would shape up. However, most IT experts thought that this partnership could lead to better IT services. And, seeing how DXC Technology, the newly company formed out of CSC and HPE is pitching towards creating a digital enterprise, the future looks both bright and secure for the millions of HP and CSC customers.

In early May 2016, reports surfaced that negotiations between CSC and HP is making progress and soon both the companies will come together under one brand name. But it was not until April 2017 that DXC Technology came to its full being with over with 170,000 employees and bringing annual sales of $26 billion.

Mike Lawrie, former CEO of CSC stressed on making a digitally competitive organization with DXC, built on a foundation of trust and transformation. While opening bell at the New York Stock Exchange Monday to commemorate the creation of the company, Lawrie appealed to bring back the core business talent of their companies to help clients convert digital opportunities into business success.

"With the successful close of our transaction, we are standing up a company that is ideally suited to meeting the needs of a rapidly changing technology marketplace," Lawrie said in a statement. "We are looking forward [to] delivering on our promise of producing greater value for clients, partners and shareholders, along with growth opportunities for our people."

DXC leaders have built a three –pronged approach to drive the company’s growth in the coming years. The company will now be looking to focus more on building its partner community that could help them deliver digital transformation projects. The second step the company plans to implement is to create next-generation talent within the enterprise. Finally, DXC is aiming to grow its revenue margin from 1 to 4 percent annually by 2020.

HPE President and CEO Meg Whitman said in a statement, "The close of this transaction leaves HPE with a crystal clear mission, tied directly to the solutions our customers and partners tell us they want most. I am also particularly proud that this transaction will deliver approximately $13.5 billion in value to HPE and its shareholders, which is almost sixty percent higher than when it was first announced last year."