Gov. Edwards to make major economic development announcement

Governor John Bel Edwards speaking at Mercedes Benz Superdome

Details will be released at 2 p.m. today by Gov. John Bel Edwards at the Mercedes-Benz Superdome, in what economic development officials have called "one of the most significant economic development announcements in Louisiana history".

Edwards was at the Superdome on Monday to announce a planned expansion by DXC Technology.

"I'm thrilled to welcome DXC Technology to the City of New Orleans", Mayor Landrieu said. The city's last "win" with General Electric followed gains with Gameloft and IBM, among others.

DXC was created in April 2017 by a merger of two longstanding companies in the US tech sector: HP Enterprises, once part of Hewlett Packard, and Computer Sciences Corp., known as CSC, according to the report.

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According to DXC's corporate profile, the company has 155,000 employees in more than 70 countries, serving some 6,000 clients. For its New Orleans office, DXC will begin hiring 300 IT and other staffers, aiming for 2,000 over the next five years. DXC will hire 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.

Hecht and business groups have pitched New Orleans as a "low cost, high culture alternative" to other tech cities - particularly as companies look to cut down on labor costs by moving to relatively "cheaper" areas where cost of living also is "cheaper" compared to saturated tech hubs. And the state is happy to oblige.

Virginia-based DXC Technology Co (DXC.N) will develop the center to create digital services for its global clients, which total almost 6,000 across 70 countries, the company said in a statement. A portion of that will be injected into the local higher education system for workforce development. Those grants include a $15 million flexible performance-based grant, a $2.2 parking assistance grant, and a $1.5 million demolition grant.

"Companies have to have [IT services] in order to remain competitive and viable in a global economy", said Louisiana Economic Development Secretary Don Pierson.