DXC Technology (DXC) to modernize Renfe’s LogiRail IT infrastructure


DXC technology DXC recently announced that LogiRail from Spanish rail operator Renfe has selected the company for the modernization of its IT infrastructure. The $ 6 million contract will ensure the rail company’s growth accelerates beyond its pre-pandemic levels while meeting growing demand for its passenger and freight services.

In accordance with the contract, DXC will provide LogiRail with critical IT platforms, operating systems, databases and IT applications for digitization and modernization. The tech firm’s competence center for cloud technologies, an organizational structure used to coordinate IT skills with a company, will help Spain’s national rail operator increase its freight base to 1.5 million tonnes in 2022.

DXC will also provide an operational dashboard to the rail operator to get real-time information that will help maintain passenger safety and check if the cargo is reaching its destination on time.

This 12-year collaboration with Renfe Group reflects the reliability of DXC’s cloud platforms and technological capabilities. This, in turn, will make the company Renfe’s main IT partner.

The company is currently focused on the cloud computing, cyber business and big data market. Customers increasingly rely on cloud-based services as they make the IT system more agile and productive, resulting in significant cost savings. However, the segment is still under-penetrated.

DXC technology company. Price and consensus

DXC technology company. price-consensus-chart | DXC technology company. Quote

Through Gartner, global IT spending is expected to rise to $ 4.5 trillion in 2022, suggesting a 5.5% increase from 2021. The research firm expects global spending on IT services increase 8.6% year-over-year to $ 1.29 trillion this year. Therefore, DXC, a major player in the space, should take advantage of this untapped opportunity.

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DXC currently carries a Zacks Rank # 2 (Buy).

Some other broad tech stocks that investors may consider are Electronic Arrow ARW, which sports a rank 1 of Zacks (strong buy), and Advanced micro-systems AMD and Qualcomm QCOM, both wearing a Zacks Rank # 2. You can see The full list of today’s Zacks # 1 Rank stocks here.

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