In the largest jobs-related economic development deal in Louisiana’s history, DXC Technology has announced it will establish a 2,000-job Digital Transformation Center in the heart of New Orleans. The project will create more permanent direct jobs at one site than any prior economic development deal in Louisiana.
“We’re thrilled to become a member of the New Orleans community, and want to thank the leadership of the City of New Orleans and State of Louisiana for their exceptional work in bringing DXC and several thousand jobs to the area,” said Mike Lawrie, DXC Technology’s chairman, president and CEO. “Our Digital Transformation Center will be a world-class facility in every way. It will be integral to DXC’s strategic growth objectives, deliver transformative next-generation digital IT services and solutions to our clients, and create new opportunities for current and future employees. As an established global technology services and solutions leader, we continually seek opportunities to strengthen our leadership and competitive positions and to help clients on their digital transformation journeys. This is a truly exciting opportunity for DXC. We look forward to establishing our local presence and, as a vital partner, contributing to the recognition of New Orleans and Louisiana as leading technology and growth centers.”
Virginia-based DXC Technology was formed in April 2017 by the merger of CSC and the Enterprise Services Division of Hewlett Packard Enterprise. This project comes on the heels of major software and IT projects in Louisiana by EA, CenturyLink, IBM, CSRA, CGI, GE Digital and others in the past decade.
DXC Technology will pursue a highly integrated model of higher-education workforce solutions to prepare talent for its Digital Transformation Center in New Orleans, where next-generation technology services that support clients’ digital transformations will be developed and delivered beginning January 2018. DXC will hire 300 IT and business enterprise professionals during 2018, then ramp up to 2,000 jobs over five years and an annual payroll exceeding $133 million by 2025.
“This is an historic economic development achievement for our state,” said Gov. John Bel Edwards. “DXC Technology could not have made a better selection than to choose New Orleans for their Digital Transformation Center, and we embrace the challenge of preparing our best and brightest students for this remarkable opportunity. DXC’s selection of New Orleans represents the rarest and most promising economic development win that Louisiana or any state could hope for. With this project, Louisiana gains a next-generation leader in global technology services, our college graduates will find unprecedented job opportunities at home, and New Orleans will welcome a landmark project to elevate its economy as the city celebrates its Tricentennial next year.”
DXC Technology will establish the Digital Transformation Center in the Central Business District at a site to be finalized soon. In addition to the 2,000 new direct jobs, Louisiana Economic Development (LED) estimates the project will result in 2,257 new indirect jobs, for a total of more than 4,250 new jobs in the state’s Southeast Region. Company officials identified New Orleans as a talent-laden, culturally diverse, high quality-of-life city that would appeal to the technology professionals it will hire for its Digital Transformation Center.
Over the past several months, the company embarked on an exhaustive search of dozens of cities for the establishment of a Digital Transformation Center in the Americas. With the selection of New Orleans, the city and surrounding region will experience a dramatic economic impact from the DXC Technology project. The LSU Economics & Policy Research Group performed an economic impact analysis estimating the DXC Technology project will translate to $64.3 million in new Louisiana taxes, $868.4 million in new Louisiana earnings and total economic output of $3.2 billion from 2018 through 2025.
To meet the project’s workforce demand, the State of Louisiana will fund a $25 million higher education initiative to expand the number of degrees awarded annually in computer science, management, and science, technology, engineering and math, or STEM-related studies. The Louisiana State University System, University of Louisiana System and the Louisiana Community and Technical College System will guide the initiative primarily through four lead campuses: LSU in Baton Rouge, the University of New Orleans, Southeastern Louisiana University in Hammond, and Delgado Community College in New Orleans. Patterned after prior software and IT initiatives in Louisiana, the DXC Technology project represents the state’s largest single higher-education investment in a private-sector workforce partnership.
Through company-advised curricula at Louisiana college campuses, students will gain insights into DXC’s end-to-end strategies for solving compelling, real-world challenges in technology for a global clientele.
“LSU is pleased to be part of this partnership investing in higher education and the workforce of Louisiana,” said LSU President F. King Alexander. “As the state’s flagship university, we are focused on solving the state’s most pressing challenges. Bringing a partnership like this to the New Orleans area and to LSU’s campus is a win for the entire state.”
“We could not be more excited to welcome DXC Technology to Louisiana,” UL System President and CEO Jim Henderson said. “Our partnership with this industry leader and Louisiana Economic Development will enable us to create and enhance curricula, further develop our world-class faculty and produce a workforce that gives the greater New Orleans region a competitive advantage. Southeastern and UNO, supported by the entire Universities of Louisiana enterprise, are well positioned to develop talent that will meet the needs of the 21st century economy.”
“Today’s announcement is perhaps the most significant win for the people of New Orleans and Southeast Louisiana in a generation,” said President Monty Sullivan of the Louisiana Community and Technical College System. “Thanks to Governor Edwards, Secretary Pierson and the entire state and local economic development team, we continue the drumbeat of success in growing and diversifying our state’s economy. At the heart of this decision was the commitment by Governor Edwards, his team, and the combined efforts of the higher education community to provide the workforce necessary to ensure success for our newest business partner. We look forward to the partnership.”
Louisiana also will leverage its deep talent base of military service members who are exiting active duty. From a Veteran Initiative supplying state contract opportunities for veteran-owned businesses to the Louisiana Veteran Entrepreneurship Program, frequent job fairs and ongoing employment assistance, Louisiana offers a diverse slate of business programs for veterans. Military installations – including Fort Polk, Barksdale Air Force Base and the Naval Air Station Joint Reserve Base near New Orleans – account for more than 80,000 military and civilian jobs and over $8 billion in annual economic output in the state.
“Our mission is clear,” said Louisiana Department of Veterans Affairs Secretary Joey Strickland. “Our department provides comprehensive care and quality services to Louisiana’s veterans, and their families. Helping them find meaningful work in their hometown with organizations like DXC Technology is an added bonus and one that we’re happy to help facilitate.”
Collaborating on all workforce initiatives for the DXC Technology project in New Orleans will be LED FastStart®, now ranked as the No. 1 state workforce training program in the nation for eight consecutive years. Louisiana Economic Development created the program as a comprehensive provider of workforce solutions for expanding Louisiana employers in target industry sectors.
“Louisiana offers a favorable business climate, world-scale infrastructure and exceptional alignment between state, parish and local economic development partners,” LED Secretary Don Pierson said. “Ultimately, the game-changer that often takes us from being a strong competitor to the most compelling business destination is the innovative, groundbreaking team we have at LED FastStart. From Benteler Steel/Tube in Northwest Louisiana to CenturyLink in Northeast Louisiana, Sasol in Southwest Louisiana, RoyOMartin in Central Louisiana, GE in New Orleans and many, many others, FastStart has proven its mettle time and time again. They will be an invaluable resource as we ramp up hiring for this landmark DXC project.”
To secure the project, the State of Louisiana offered the company a competitive incentive package with $18.7 million in performance-based grants payable over five years and to include a flexible performance-based grant ($15 million), a performance-based parking assistance grant ($2.2 million) and a performance-based demolition grant ($1.5 million). DXC will receive the comprehensive workforce solutions of LED FastStart, while the $25 million higher education initiative will provide grants directly to Louisiana college campuses over five years for faculty, curriculum and other instructional resources that support the project. DXC also is expected to utilize Louisiana’s Quality Jobs Program.
Throughout the company’s search, Greater New Orleans Inc. and the New Orleans Business Alliance provided site selection assistance, concierge services, real estate consultations, demographic data and other support crucial to the project’s success.
“The announcement of DXC Technology’s Digital Transformation Center in New Orleans is the capstone on a decade-long effort to make New Orleans and Louisiana a new hub for technology and innovation,” GNO Inc. President and CEO Michael Hecht said. “It is fitting that DXC is opening a ‘Transformation Center,’ because we fully expect the impact to be transformative to both DXC, as a new global technology leader, and New Orleans, as a new national technology hub. On behalf of everyone in Greater New Orleans, we are thrilled to welcome DXC Technology, and look forward to a long and mutually productive relationship.”
“We welcome DXC to America’s most unique and ascendant city,” said President and CEO Quentin Messer of the New Orleans Business Alliance. “DXC’s decision to make this significant strategic investment in New Orleans not only affirms the vibrancy of the local technology ecosystem but also demonstrates New Orleans’ increasing attractiveness for large-scale financial and human capital investment. This significant win for the people of New Orleans resulted from a collaborative effort by state and local government, the private sector and economic development. Our commitment to DXC does not end with this announcement; it is only beginning.”
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