DFAT trades Capgemini for DXC in $21M SAP support deal

DFAT trades Capgemini for DXC in $21M SAP support deal

DXC will now provide SAP and PeopleSoft system support and maintenance

Seelan Nayagam (DXC)

Seelan Nayagam (DXC)

Credit: DXC

DXC Technology Australia (DXC) has won a $21 million contract to provide software support for the Department of Foreign Affairs and Trade (DFAT).

The global systems integrator (SI) will now provide SAP and PeopleSoft system support, maintenance and enhancement over the next three years.

The new contract sees DXC take over a position previously held by SI rival Capgemini, whose contract expired on 30 August. 

According to DFAT, the contract will see DXC deliver level 3 software support and enhancement services to DFAT’s Enterprise Resource Planning systems.

These, the department added, support thousands of DFAT officers across nine locations in Australia and at 121 posts in 85 countries.

DFAT had released two open requests for tender, one for level 3 support of the SAP system and one for the Level 3 support of the PeopleSoft system. 

ARN understands that two separate, but parallel, evaluation processes were conducted and resulted in DXC winning both contracts.

For DXC, the win follows a number of regional changes at DXC, as the SI began merging operations in Asia with Australia and New Zealand, forming a combined business entity across Asia Pacific.

The new-look regional organisation will be led by Seelan Nayagam, who has held trans-Tasman responsibilities since 2014.

Locally, the Australian branch has recently turned a pre-tax profit from continuing operations of $8.92 million, after a year of battling the costs associated with its landmark merger of CSC and HPE’s Enterprise Services business from 2017.

Meanwhile globally, the company expects  to cut 4,500 employees, or around 3.5 per cent of its workforce, as part of a major cost-cutting drive.

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