The contract win will see the company establish a new office in the state's capital, Adelaide.
"The state will no longer own and manage physical devices, giving agencies more flexibility and access to innovative ICT solutions to help modernise the services they deliver to the community," a statement issued on 16 February by the office of South Australian Premier, Jay Weatherill, said.
"This more efficient, end-to-end approach will reduce costs as government will only pay for the services it consumes. Once implemented, the new arrangement is expected to deliver savings of over $11 million per year," it said.
Given the heritage in the local market of its various businesses, government makes up a fair proportion of the new company's work in Australia and New Zealand. However, it also plays in the healthcare, insurance, diversified, banking and capital markets.
For Nayagam, the launch represents a "new beginning" for its local clients, partners and employees.
"We have been presented with a unique opportunity to launch a new company and brand based on the combined experience and talent of two IT services leaders," Nayagam said.
As DXC Technology, we will harness the best skills and latest technologies to help our clients transform their businesses and thrive on change," he said.
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