Baton Rouge was among the 30 mid-sized markets that competed against New Orleans for Virginia-based DXC Technology’s new “Digital Transformation Center,” which will create 2,000 IT jobs over the next seven years.
Both cities were on the initial list of markets the company evaluated as a potential site for the facility, where employees will focus on helping clients with cloud computing, cyber security and data analytics.
Gov. John Bel Edwards announced Monday that the $25 billion company will open a new facility early next year in downtown New Orleans, where it will initially employ 300 workers with an average salary of more than $60,000 a year.
Baton Rouge made a strong pitch for the facility earlier this year, according to Louisiana Economic Development Secretary Don Pierson. But it but didn’t make the company’s short list, which was whittled down to 10 then six then three finalists.
“The (site selection) consultant visited Baton Rouge and we assembled a number of community leaders,” Pierson says. “BRAC hosted an event. There were a number of conversations and they made a great presentation.”
DXC declines to comment on why it specifically chose New Orleans over Baton Rouge. Company officials said Monday, however, that the low cost of doing business in Louisiana coupled with a generous $118 million incentive package, including a $25 million investment in higher education tech training programs, were among the major factors.
Ironically, the presence of IBM in downtown Baton Rouge, which has been touted as a catalyst for economic development in the tech sector, likely worked against Baton Rouge in trying to snag the deal, Pierson says.
“It is widely known that IBM is the flagship here and is an important community partner, and has a goal of hiring 800 personnel,” he says. “So they and other IT players would at least represent some significant competition for workforce.”
BRAC President and CEO Adam Knapp agrees that competition for workforce could have factored into DXC’s decision, but he argues IBM’s presence in Baton Rouge ultimately helped pave the way for another tech company to come to Louisiana.
“When you look at DXC’s press release and the reasons they cite for coming here, it talks about how many other companies have preceded this one in the last five to 10 years—EA, GE Capital (in New Orleans), IBM,” Knapp says. “There has been an escalating progression that has built a tech sector and helped us get to where we are today.”
Knapp says the DXC deal for New Orleans is a bigger win for the state overall, including Baton Rouge, which will benefit in particular from the investment in computer science and STEM-related programs at LSU.
“You always want to win,” he says. “But I’m thrilled Louisiana won.”
—Stephanie Riegel
