State coughs up millions to beef up IT training for DXC
NEW ORLEANS, LA (WVUE) - It's being called one of the biggest days ever for economic development in New Orleans and the state. A digital transformation company, spun off of Hewlett-Packard, has announced they're locating one of their major operations in New Orleans. But that commitment comes with a price.
DXC technology says they will locate in an existing building somewhere in the CBD. The company is promising thousands of new jobs, but more importantly it could lay the foundation for a major new technology industry in New Orleans.
"New technologies, licenses plate readers, facial recognition, a hundred things, and focusing in tools," said Don Pearson with Louisiana Economic Development.
On Monday he said DXC Technology will begin a digital transformation center in New Orleans within the next year in part because of a commitment from higher education.
"The world of IT changes so rapidly we need people trained in science and technology and data," said DXC vice president Stephen Hilton
The company said it will provide 300 new jobs within a year, paying in excess of $60,000. A trained workforce will be key.
"January is less than 60 days away. We got a lot off work to do,"said University of Louisiana system president Jim Henderson.
Though negotiations with DXC began in earnest 18 months ago, business leaders say the groundwork for this decision was laid a long time ago.
"We have to make sure they have the worker pipeline they need, the people they get in have the right schools, and there are no problems with permitting," said Michael Hecht with GNO Inc.
The city has offered an incentive package of $5 million to to $8 million to bring DXC to New Orleans. The state is offering one worth more than $100 million. And the state is offering $25 million to seed new computer science programs.
DXC says they should be up to 2,000 workers within three years. The company is also expected to produce more than 2,200 spinoff jobs, most centered in the Poydras corridor.
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