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DXC Technology – Next-Gen Testing Services

Vendor Analysis

by Dominique Raviart

published on Jan 24, 2019

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Report Overview:

DXC Technology has put its testing capabilities within its Application Services business unit. The Application Services business unit is sizable: it employs 50k professionals and serves 1k clients. The priority of Application Services is to be positioned within digital. To achieve this positioning, Application Services has a two-folded strategy: defend its core application management capabilities, which employ 35k personnel, and pivot its offerings towards next-gen offerings.

An important element of this strategy is based on:

  • Adopting more flexible commercial models, e.g., as a Service,
  • Changing its delivery engine towards agile and DevOps, and deploying automation technology and analytics, with the intent of releasing cost savings to clients and fund their application service projects
  • Partnering with select technology vendors and co-investing in GTM.

Who is this Report for:

NelsonHall’s Software Testing Vendor Assessment for DXC is a comprehensive assessment of DXC’s next-gen testing service offerings and capabilities designed for:

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

Scope of this Report:

The report provides a comprehensive and objective analysis of DXC’s next-gen testing 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:

Within its Application Services business unit, DXC has three practices: Testing and Digital Assurance (TDA), application development, and application management.

TDA is a formal horizontal line within Application Services, with its own P&L, and responsibility for service portfolio and IP, and delivery organization.

The TDA organization has gone through many changes during its tenure as part of EDS, HPE Enterprise Services and CSC. Two significant acquisitions in the QA space were, however, RelQ Software by EDS in 2007, and AppLabs by CSC in 2011. At the time of its acquisition, Hyderabad-based AppLabs was the largest software testing services pure play with 2.5k personnel and revenues of ~$100m.

The headcount of TDA is ~10k career testers.

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