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Introduction

On January 7, 2019, DXC announced that it would acquire Swiss-headquartered engineering services firm Luxoft for $2bn. This acquisition brings much-needed capabilities in engineering services and product development to DXC as it strives to establish a firm and broader foothold in the end-to-end digital transformation space.

Highlights

  • Luxoft will strengthen DXC's digital offerings portfolio and bring in high-growth digital accounts, especially in the automotive and financial services industries.
  • The added scale that DXC brings to the table should allow Luxoft access to a wider customer base of large enterprise clients.

Features and Benefits

  • Evaluates the rationale behind DXC's acquisition of Luxoft.
  • Analyzes the factors that make this is a good addition to DXC's portfolio.

Key questions answered

  • Why does DXC need Luxoft?
  • What do DXC and Luxoft need to do to put out a strong joint go-to-market message?

Table of contents

Ovum view

  • Summary
  • Luxoft and DXC together will have a greatly expanded digital portfolio
  • The acquisition provides DXC with much-needed application-focused skills
  • DXC needs to be careful when integrating Luxoft into its fold

Appendix

  • Further reading
  • Author

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