CSC-HPE Merger: Looking Beyond the Obvious

The merger of HPE and CSC marks a huge consolidation at the helm of the global BPS market, creating an entity with substantial scale and diversified portfolio. This creates a compelling value proposition for DXC – it can leverage its strengths in the existing IT business to provide enhanced scale and reputation for the BPS part. The combined entity is better positioned as a brand and we expect it to be invited to a larger set of client conversations than those witnessed by the individual companies.

Each of the BPO segments stand at varying levels of maturity and competition in the market. The DXC management needs to carefully evaluate each of the BPO segments and devise a strategic roadmap to achieve wider success in the overall BPO business. However, there are certain challenges that DXC might want to look out for. Integration issues may arise, given the different sets of mission, vision, and values for the individual entities. Also, optimizing a large number of moving parts at scale, including CSC’s recent acquisitions, could be an area of concern for DXC’s management. This viewpoint explores the potential implications of the merger on various stakeholders in the market – DXC Technology, enterprises, and competitors.

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