DXC Technology dedicated its New Orleans Digital Transformation Center on Poydras Street in New Orleans in May. In November, the company, a global end-to-end IT services provider, announced it would create 2,000 new direct jobs in New Orleans over the next five years in what will become Louisiana's largest technology-focused economic development project to date.
The arrival of DXC Technology, formed in April 2017 by the merger of CSC and the Enterprise Services Division of Hewlett Packard Enterprise, cements Louisiana's position as one of the fastest-growing software and IT destinations in the U.S., following major projects by EA, CenturyLink, IBM, CSRA, CGI, GE Digital and others in the past decade. DXC will hire approximately 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.
The State of Louisiana is funding a $25-million higher education initiative to expand the number of degrees awarded annually in computer science, management and STEM-related fields (science, technology, engineering and math). The Louisiana State University System, University of Louisiana System, Southern University System and the Louisiana Community and Technical College System will guide the initiative through their campuses. 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.
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.
In addition to 2,000 new direct jobs, Louisiana Economic Development 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 the Digital Transformation Center.
Research Park Anchor Adds Weight
CGI, a global IT and business consultancy, is expanding its Lafayette IT Center of Excellence and creating 400 new direct jobs, bringing employment to 800 over the coming years at the University of Louisiana at Lafayette Research Park, and at a second Lafayette Parish site to be determined. Statewide, CGI's employment will reach 900. In March, CGI announced the Lafayette IT Center of Excellence had surpassed the original full-employment target of 400 professionals. Now, the company will build on that baseline with a second phase of growth.
The announcement marks the completion of an amended Cooperative Endeavor Agreement, or CEA, among the State of Louisiana; CGI Federal; UL Lafayette; the Lafayette Economic Development Authority, or LEDA; Louisiana Economic Development, or LED; and Ragin Cajun Facilities Inc., the university affiliate that owns and manages the 50,000-sq.-ft. (4,600-sq.-m.) facility where CGI is located at the UL Lafayette Research Park. In May 2016, Gov. Edwards and CGI dedicated the $13.1-million IT center, which serves as an anchor for the research park.
"Since opening our campus facility in 2016, we have continued to measure success in many different ways, including the time and resources our employees have committed to community engagement, whether through youth-oriented STEM education and environmental sustainability projects, or our successful ongoing collaboration with the University of Louisiana at Lafayette," said Dave Henderson, who serves as president of CGI's U.S. commercial and state government operations.
New Orleans the 'Clear Choice'
Austin, Texas-based Accruent, a developer of physical resource management software, will create 350 new direct jobs in New Orleans and establish a technology center of excellence in the city's Central Business District. The new jobs will include an average annual salary of $65,000; Louisiana Economic Development estimates the project will result in 338 indirect jobs, for a total of more than 680 new jobs in Louisiana's Southeast Region.
With 50 clients already in Louisiana, "New Orleans became the clear choice for our next wave of expansion," according to Accruent CEO John Borgerding. The new office will include teams from several corporate departments, including engineering, support, professional services, human resources, cloud operations, development operations, leadership, consulting, project management and sales.