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DXC Technology - SAP HANA and S/4HANA Services

Vendor Analysis

by NelsonHall Analyst

published on Sep 08, 2017

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Report Overview:

This NelsonHall vendor assessment analyzes DXC Technology's offerings and capabilities in SAP HANA and S/4HANA services.

Who is this Report for:

NelsonHall’s SAP HANA and S/4HANA Services vendor assessment for DXC Technology is a comprehensive assessment of DXC Technology’s SAP HANA and S/4HANA services offerings and capabilities designed for: 

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for SAP services 
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers 
  • Financial analysts and investors specializing in SAP services sector.

 

Scope of this Report:

The report provides a comprehensive and objective analysis of DXC Technology’s SAP HANA and S/4HANA service offerings, capabilities and market and financial strength, including: 

  • Analysis of the company’s offerings and key service components
  • Revenue estimates
  • Identification of the company’s strategy, emphasis and new developments
  • 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 strengths, weaknesses and outlook.

 

Key Findings & Highlights:

In May 2016, Tysons, Virginia based CSC announced that it was acquiring the Enterprise Services (ES) division of HPE. As of April 1, 2017, when the merger was completed, CSC and HPE Enterprise Services re-branded as DXC Technology (DXC). DXC Technology operates 31 strategic delivery centers and 91 data centers in over 70 countries, servicing ~6k clients. 55% of its labor force operates in low-cost geographies in 21 global delivery centers. Of CSC and HPE’s top 200 accounts, there is a less than 15% overlap in the revenue streams.  

The newly formed DXC Technologies has ~15k SAP skilled resources. The SAP capabilities of each company were mainly complementary, as CSC possessed more project, implementations and SI focus, while HPE ES had a greater concentration in ongoing operations. This has enabled DXC to essentially double its SAP workforce, with limited portfolio overlap.  

DXC Technology is also using partnerships to expand its capabilities. This includes partnering with PwC consulting to deliver digital strategy consulting and HCL to deliver SAP HANA services. 

In January 2014, CSC and HCL entered a partnership focused on application modernization and software services aimed at the banking sector. In June 2014, the companies expanded their partnership to offer cloud based SAP HANA services, initially targeting the banking sector. It rolled out SAP industry templates and services, starting with deposits and loans.  

Through this partnership, DXC Technology also offers a configuration of SAP SaaS offerings including SuccessFactors, Ariba, and Hybris. Other services include application migration to private and public clouds, based on the Agility Platform. The first client for the joint offering was AT&T. 

In March 2016, CSC acquired UXC, an Australian independent IT services companies, for $289m. UXC brought an enterprise applications practice and a burgeoning cybersecurity practice. It also expanded DXC Technology’s coverage in Australia, adding ~3k employees (2.5k in Australia). UXC’s division focused exclusively on SAP services for the Australia and New Zealand market is called UXC Oxygen. NelsonHall estimates it has ~500 employees. 

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