DXC is betting IT apps and services will stay on-premises

DXC is betting IT apps and services will stay on-premises

DXC Technology, the massive service provider formed in the 2017 merger of HPE Enterprise Services (formerly EDS) and Computer Sciences Corp., has a new CEO who is focused on shedding distraction businesses and focusing on core businesses of IT outsourcing.

That means looking at “strategic alternatives,” including the possible divesture of three of its businesses it feels are a distraction and slowing the company’s growth. The company feels most IT apps and services will remain on-premises and will focus on supporting that business.

Last week’s conference call with financial analysts to discuss Q2 earnings was the first for new CEO Mike Salvino, who joined the company in September after 22 years at Accenture. DXC did not have a good quarter. The company reported non-GAAP earnings of $1.38 per share, which fell short of the consensus estimate of $1.44 and way down from EPS of $2.02 from the same quarter a year ago. Revenue of $4.85 billion fell short of the analyst estimate of $4.92 billion.

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