DXC extends BAE Systems hybrid cloud deal for five years

DXC Technology has secured a five-year extension of its partnership with BAE Systems, covering a global hybrid cloud platform for more than 110,000 employees.

The agreement extends a relationship that began in 1994. As part of the next stage of BAE Systems' broader digital overhaul, DXC will deliver an AI-enabled hybrid cloud platform.

For BAE Systems, the project is centred on creating a single technology environment across its international defence, engineering and manufacturing business. The platform is intended to help the company respond more quickly to changing operational, defence and geopolitical demands.

Under the contract, DXC will provide a global hybrid cloud environment designed to simplify and consolidate applications and infrastructure. The work is also intended to improve workload portability and make services more consistent across BAE Systems' operations.

The deal highlights the scale of the infrastructure challenge facing large defence groups, which must run complex systems across multiple jurisdictions while meeting strict security requirements. At BAE Systems, the technology estate supports a workforce of more than 110,000 worldwide.

The programme is designed to reduce legacy complexity and increase automation across BAE Systems' operations. It is also intended to create a digital foundation for future engineering, manufacturing and defence programmes.

The companies have worked together for more than three decades, making this one of the sector's longer-running supplier relationships. Over that period, DXC has been a core partner in BAE Systems' technology ecosystem.

Operational shift

The latest phase of work reflects a broader push by major industrial and defence companies to modernise internal systems without moving entirely away from on-premises infrastructure. Hybrid cloud has become a common model for organisations balancing data control, security and flexibility.

For BAE Systems, the emphasis appears to be on standardising systems across a dispersed organisation while reducing duplication in older infrastructure. The transformation is expected to improve operational efficiency and lower infrastructure overhead through workload optimisation, consolidation and more energy-efficient cloud operations.

That focus on consolidation is significant in a defence setting, where legacy platforms often remain in place for years because of security accreditation, operational dependency and the difficulty of replacing systems tied to long programme cycles. A hybrid model allows businesses to modernise parts of their estate while keeping sensitive workloads in tightly controlled environments.

Mary Haigh, Director Digital Delivery at BAE Systems, outlined the company's aims for the programme.

"We're taking a significant step in our transformation of the digital ecosystem to deliver a secure, insight-led digitally enabled working environment to power operational excellence across BAE Systems. Our partners will play a critical role by unlocking greater agility, pace and innovation across our business," said Haigh.

Defence demand

The contract also comes as defence companies face growing pressure to adapt to a more volatile geopolitical backdrop. Faster internal decision-making, clearer operational visibility and more standardised systems have become increasingly important as governments and prime contractors respond to shifting security requirements and more demanding programme delivery schedules.

DXC's work for defence and aerospace organisations spans cloud, infrastructure, cyber security, engineering and mission-critical operations. The BAE Systems agreement gives the company a prominent reference point in the UK defence market, where digital modernisation is becoming a growing area of spending alongside more traditional procurement.

Derek Allison, General Manager, DXC Technology UK & Ireland, said the work would focus on resilience and standardisation across BAE Systems' international operations.

"BAE Systems operates in some of the world's most complex and security-sensitive environments. This next phase of our partnership focuses on creating a more resilient, standardised and intelligent digital foundation across its global operations. By combining secure hybrid cloud, AI-enabled operations and automation, we are helping BAE Systems simplify complexity, improve operational visibility and support faster, more informed decision-making across the enterprise," said Allison.

The platform will support BAE Systems' worldwide operations as the group continues to update the systems behind its engineering, manufacturing and defence work.