DXC Technology (DXC) Selected by GEFA Bank to Digitize Services

DXC Technology DXC announced that the company has been selected by SociétéGénérale’s subsidiary, GEFA Bank, to leverage digital transformation solutions.

Under GEFA Bank’s “G-Rocket” Program, DXC will transform the bank’s mission-critical applications and data from its existing data center to Microsoft’s MSFT Azure cloud platform. This migration process is anticipated to conclude by September 2022.

Microsoft’s Azure platform is a comprehensive set of cloud computing services helping organizations solve business challenges and create the future. It is a space to build, run and manage applications across multiple clouds, on-premises and at the edge, with client-specific tools and frameworks.

Through this deal, DXC intends to scale GEFA Bank’s IT infrastructure by systematically deploying the bank’s application landscape to cloud-native services such as Azure Kubernetes Service. The company has placed a training program with Microsoft to train selected GEFA BANK experts for future operations.

DXC Technology Company. Price and Consensus

DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote

Both parties have agreed to discontinue their partnership in October 2027.

DXC is focusing on partnerships to enhance its offerings. It is digging deep to expand its networking-based infrastructure with the benefits of VMware’s hybrid cloud offerings, which aided it in strengthening its position in the virtualization server market.

Besides, the company is in partnership with Amazon to develop cloud-based solutions for enterprise and public sector clients. We believe the company’s focus on entering into strategic partnerships will help it expand in the cloud computing space and generate additional revenues.

Currently, DXC is focusing on the cloud computing market, cyber business and Big Data business. Clients are increasingly relying on cloud-based services as the company makes the IT system more agile and productive, which leads to considerable cost savings. However, the segment is still underpenetrated.

Per Gartner, worldwide IT spending is anticipated to be $4.5 trillion in 2022, suggesting an increase of 5.1% from 2021. The research firm expects worldwide spending on IT services to grow 7.9% year over year to $1.28 trillion this year. Therefore, DXC, being a major player in the space, is anticipated to benefit from this untapped opportunity.

Zacks Rank & Key Picks

DXC and Microsoft both currently carry a Zacks Rank #3 (Hold). Shares of DXC and MSFT have jumped 19.8% and 27.3%, respectively, over the past year.

Some better-ranked stocks from the broader computer and technology sector are Advanced Micro Devices AMD, sporting a Zacks Rank #1 (Strong Buy) and Axcelis Technologies ACLS, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AMD’s first-quarter fiscal 2022 earnings has been revised upward by 23 cents to 91 cents per share over the past 60 days. For fiscal 2022, AMD’s earnings estimates have moved south by a penny to $3.99 per share in the past 30 days.

AMD’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17%. Shares of AMD have gained 41.3% in the past year.

The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised by 5 cents upward to 92 cents per share over the past 60 days. For 2022, Axcelis’ earnings estimates have moved north by 12.4% to $3.99 per share in the past 60 days.

Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have soared 106.2% in the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.