Can DXC Technology turn its fortunes around with new AI bet?

With more than 38,000 employees in India—its largest workforce globally—Ashburn-headquartered DXC Technology has placed the region at the centre of its AI-driven transformation strategy. Recently, the company opened its new AI Hub in Bengaluru to bring consulting, engineering, and operations under one roof, enabling co-innovation with clients on AI solutions. The new Customer Experience Center supports the entire AI lifecycle, from ideation and development to deployment, operations and optimisation. The regional leadership believes that India's talent, skills, scale, and innovation capabilities will play a pivotal role in driving its global technology transformation strategy for both the company and its customers. 

“The combination of our legacy operational capability, as well as our investment in AI and agentic platforms, the combination of those two things is unique. We believe it's very powerful, and it gives us great confidence that we'll be able to execute on our strategy,” said Rob Le Busque, President of Asia Pacific & Japan.    

At its recent investor day, DXC showcased OASIS, its AI-enabled service delivery platform, with 90–95% of its code written using Claude. The platform is already live with nearly 50 customers. Going forward, the company plans to incorporate OASIS into all its technical solutions for new bids, expecting it to improve win rates. DXC has also set up an internal incubator, LabX, where a small, high-impact team is developing new AI-led solutions. In addition, it has launched DXC Engineering as a separate business to capitalise on growing demand for engineering-led capabilities.  

At the time when the company’s stock on the New York Stock Exchange has been down 36.66% in the past one year, DCX’s is hinging on its AI pivot to boost revenue and profitability for its core offerings as well as with new product offerings.   

Created through a strategic combination of Computer Sciences Corporation (CSC) with the Enterprise Services business of HPE in April 2017, the company back then had an annual revenue of $24.5 billion, heavily skewed towards infrastructure services such as cloud management, workplace enterprise security, and others forming nearly 50% of the revenue base. The company also had nearly $3.6 billion floating rate debt at the end of March 31, 2018. 

With the top deck reshuffle three years ago, and Raul Fernandez taking over as the President and Chief Executive Officer and Rob Del Bene as the Chief Financial Officer in 2023, the management’s focus has been at improving the company free cash flow and pare debt. At the last investor day, the CFO said that over the past three years DXC had generated free cash flows with $2.2 billion and reduced net debt by $1.1 billion. Given the nature of the business, the decline in legacy infrastructure services, execution gaps, and the changing dynamics of enterprise software demand have all contributed to the company's continued revenue decline. 

Now roughly half its earlier revenue size, the company reported annual revenue of $12.6 billion in FY26, marking an organic decline of 4.8% year-on-year. Among its three reporting business segments—Consulting and Engineering Services (CES), Global Infrastructure Services (GIS), and Insurance Software & Services (Insurance)—its two largest businesses, CES and GIS, recorded organic revenue declines of 7.2% and 3.8%, respectively. 

The partnership with Anthropic and the company's plan to roll out Claude to its 1.2 lakh plus employee base, DXC also sees the implementation of agentic platforms as an opportunity with trained workforce. “The need for having an integration partner, working with clients and executing it is not dramatically different in principle from what the enterprise platforms did. So, I see this as an 'and' model, where they will continue to coexist,” said Ramnath Venkataraman, President, Consulting & Engineering Services at DXC Technology. 

Stressing on the need for services organisations as partner to execute the big tech offerings, “You need to make sure that you are making the right bets, investments in the right places, and create the depth, not the breadth, is really where the model is going to go tomorrow,” Venkataraman added.