DXC's New Zealand companies report improved sales and profits

DXC's New Zealand companies report improved sales and profits

"What we are seeing across our customer base is an absolute fixation about moving to the cloud"

Stuart Dickinson (DXC)

Stuart Dickinson (DXC)

Credit: Supplied

Global technology services giant DXC reported an improved performance across its four New Zealand companies in the year to 31 March, 2020.

Overall, sales were up slightly from $147.6 million in 2019 to $149.9 million, however profits for the year were even stronger, up from $16 million to $24 million.

DXC's four reporting entities in New Zealand are DXC Enterprise (formerly Enterprise Services), UXC Holdings, CSC NZ and Pacific and Computer Sciences Corporation.

Most of the gains in both sales an profits came from DXC Enterprise which reported $94.3 million in revenue, up from $91.6 million, and $14.2 million of profit, up from $5.9 million in 2019.

DXC NZ's new country leader, Stuart Dickinson, was not prepared to comment on the results because DXC global is listed on the New York Stock Exchange. He was, however, happy to talk about what he was seeing in the local market.

Dickinson took the reins at DXC in May, replacing John Mazenier, who is now country manager for TechnologyOne's New Zealand business.

The DXC business today was very application-centric with strong customer relationships in some legacy applications which came out of the HP Enterprise Services business, Dickinson told Reseller News.

On top of that are some strong practice businesses, such as Oxygen (SAP), Eclipse (Microsoft cloud transformation) and Red Rock (Oracle cloud).

"What we are seeing across our customer base is an absolute fixation about moving to the cloud," Dickinson said.

"That has continued to accelerate and particularly through these recent disruptions business resilience and being able to work from home has become such a thing."

More and more customer conversations were about how to get to the cloud and how to deploy legacy applications into cloud infrastructure to support growth and resilience.

Dickinson said what Xero started in New Zealand in terms of cloud first was building more and more into the enterprise space.

Such shifts were usually quickly followed by discussions around security.

"From a cyber perspective there's a lot of interest around that at the moment," he said. 

At the other side, it was about how to use the flexibility of the cloud to drive things such as AI or a single view of the customer.

That was all about accessing and using real-time customer data, often via dashboards, rather than extracting it into Excel or some other tool for subsequent analysis. 

DXC NZ also used the period of COVID-19 disruption to push ahead with upskilling its people in cloud technologies, Dickinson said.

While some of the heat went out of the talent war during that period, getting good skills and the right skills were still "super-important".

From a user perspective making cost-effective decisions was key.

Customers with multiple different "fractured" application suites continued to seek help to eliminate or connect silos.

Some customers are taking the API approach and creating those connections and others are saying opting to create a more standard platform.

"Every customer now understands that data silos and legacy silos are not going to be the future. It's about how you make all these things play together so you can, from a customer perspective deliver."

The "smoke and mirrors" behind real-time of the past is now being replaced by real systems.

Dickinson said that DXC has also built engineering and applications IP globally such as cloud and orchestration layers which enable it to orchestrate cloud workloads between providers and give customers a completely managed cloud infrastructure service.

"We can abstract that and deliver it as a true platform as a service approach," he said.

Another area of unique IP was DXC Bionix automation, that enable process checks, deployments of servers, the spinning up of environments and applications and helps to create continuous deployment trains for applications such as SAP.

On top of that there was industry-specific IP for transformation in health and retail and other specific areas.

"Adding value to each of those layers, whether or not it's the infrastructure layer, the orchestration layer or the application layer is where we have focused our IP build efforts globally and w have started to really benefit from that."

On other fronts, Dickinson said he was particularly proud of DXC's Dandelion Programme to offer opportunities to people with autism and its work with "young professional" graduate on-boarding.

Dickinson is also director/general manager of DXC Oxygen and the SAP practice in Australia and New Zealand.

DXC also today released its 2020 Beyond Disruption Business Pulse report, finding 80 per cent of businesses had fast-tracked their modernisations, with a majority embracing a cloud-first policy.

Tech budgets have also grown, by 10 per cent for businesses with more than 1000 employees, and by 5 per cent for all others.

The three most important areas for investment were workplace modernisation, cybersecurity, and data analytics.

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