IT services company says New Orleans project will create 2,000 direct jobs
By Stephanie Kelly
NEW YORK (Reuters) - An information technology services company formed this year from a merger involving Hewlett Packard Enterprise Co (NYSE: HPE) on Monday announced plans to establish a digital services center in New Orleans, bringing 2,000 new jobs to the city.
Virginia-based DXC Technology Co (NYSE: DXC) will develop the center to create digital services for its global clients, which total nearly 6,000 across 70 countries, the company said in a statement.
DXC was formed in April by a merger between CSC and Hewlett's Enterprise Services business.
To secure the project, Louisiana offered DXC an $18.7 million incentive package in performance-based grants payable over five years, according to a statement from Louisiana Governor John Bel Edwards's office.
DXC shares closed up 0.9 percent at $96.80 in trading on the New York Stock Exchange on Monday.
The company plans to hire 300 employees in 2018, and over five years will create 2,000 jobs in all, according to the governor's statement.
The project is estimated to generate $64.3 million in new state taxes from 2018 to 2025, the statement said.
"These are permanent, direct jobs right here," Governor Edwards said during a news conference on Monday. "That's why it's so exciting."
A "vast majority" of the jobs will be new positions added to the company's payroll, DXC spokesperson Rich Adamonis said in an email.
To meet the labor demand, Louisiana will fund a $25 million higher education initiative to increase the amount of degrees awarded in computer science, management and STEM-related studies, the governor's statement said. "STEM" is an acronym for science, technology, engineering and mathematics.
"Our partnership with local colleges and universities will be important to our success and will increase the number of graduates and skilled professionals in technology-related fields in the city and across the region," DXC's chief executive, Mike Lawrie, said in a statement.
The company expects the center's operations to begin in January.
(Reporting by Stephanie Kellyediting by Daniel Bases and Jonathan Oatis)