Louisiana’s incentive package for DXC Technology worth $100M+
(Editor’s Note: This story has been updated from an earlier version to include more details about the state’s incentive package.)
In order to attract Virginia-based DXC Technology to New Orleans, where it will open a Digital Transformation Center in the heart of the Central Business District, the state put together an incentive package worth more than $44 million in grants, workforce training and investments in higher education computer science and engineering programs.
Additionally, the state has agreed to rebate to the company annually an amount equal to 6% of the total salaries of “quality jobs” the company creates at the facility. Over the next 10 years, that amount could approach an estimated $57 million, provided DXC meets its full employment goals, according to Louisiana Economic Development officials. That would bring the grand total of the incentive package to more than $100 million over the next decade, not counting an additional $5 million-to-$8 million the city of New Orleans will reportedly kick in or an estimated $10 million in workforce training services provided through the LED Fast Start program.
In return for the lucrative package, the publicly traded tech giant—which has revenues of some $25 billion and more than 6,000 private and public sector clients in 70 countries—has promised to create some 2,000 permanent jobs over the next seven years with an annual payroll exceeding $133 million by 2025.
“DXC’s selection of New Orleans represents the rarest and most promising economic development win that Louisiana or any state could hope for,” Gov. John Bel Edwards said at a 2 p.m. announcement outside the Mercedes-Benz Superdome, near where the new DXC facility will be located. “With this project, Louisiana gains a next-generation leader in global technology services, our college graduates will find unprecedented job opportunities at home, and New Orleans will welcome a landmark project to elevate its economy.”