DXC Is Pulling Out Of Russia, Condemns ‘Unprovoked Attack On Ukraine’

DXC, like fellow global system integrator Accenture, is exiting its Russian business in the wake of Russia’s unprovoked invasion of neighboring Ukraine, a move which impacts 4,000 employees in over 10 subsidiaries in the country.

Global systems integrator and solution provider DXC Technology Friday said it will exit the Russian market while providing support to employees there in the wake of Russia’s assault on neighboring Ukraine.

With the move, DXC joins fellow global systems integrator Accenture in exiting business in the Russian market.

Several large global IT firms including Apple, Microsoft, Oracle, Google, Intel, AMD, HP Inc., HPE, Dell, and others have also said they are joining historic sanctions against Russia.

[Related: DXC CEO Salvino: Cost Optimization Push Will Include Sale Of Noncore Assets]

DXC did not respond to multiple requests by CRN for more information, including whether the Russian employees are officially being laid off.

DXC, in a statement the Ashburn, Va.-based company placed on-line, cited the “unprovoked attack on Ukraine as the reason for its pulling out of Russia.

“DXC Technology condemns the unwarranted aggression from the Russian Government that is leading to the death, injury, and displacement of innocent civilians in Ukraine. DXC stands with every person, company, and government across the world that is calling for an immediate end to this unprovoked attack on Ukraine,” DXC wrote.

DXC is exiting the Russian market, but looking to support its employees in the country.

“Based on the aggression from the Russian Government, we are no longer pursuing business in Russia and have committed to exit this market,” DXC said in a prepared statement. “We have approximately 4,000 colleagues in Russia and are supporting them in this time of need. We continue to support and maintain rigorous compliance with all applicable sanctions levied against Russia.”

DXC also wrote that its top priority is to care for its employees in the region, and is helping provide shelter, financial assistance, health care, and relocation support to employees and their families.

“Aligned with our ‘People-first’ strategy, DXC is matching employee donations to the Red Cross humanitarian efforts at 200% which includes providing direct financial support to our impacted colleagues. We are caring for all our people regardless of their nationality or country of origin,” DXC said.

DXC last May, in its SEC Form 10-K filing, wrote, “Negative or uncertain political climates in countries or locations where we operate, such as Ukraine and Russia, including but not limited to, military activity or civil hostilities, criminal activities and other acts of violence, infrastructure disruption, natural disasters or other conditions could adversely affect our operations.”

DXC, as of March 31, 2021, had at least 11 subsidiaries across Russia, including in Moscow, St. Petersburg, and Omsk under the names Luxoft Professional, Integrity Solutions, and others. The company also had two holding companies, DXC Russia HoldCo B.V. and DXC Russia HoldCo II B.V., based in the Netherlands.

The CEO for a solution provider, who did not want to be identified, said he feared speaking out publicly against Russia’s attack on Ukraine could lead to his company being targeted by Russia-based cyber criminals or a nation-state-sponsored attack.

“I refuse to make any public statement on this because it could put a virtual target on our company,” the CEO told CRN. “There are hackers in Russia who could look to attack companies that speak out against the Russian attack on Ukraine.”

MSPs told CRN they are taking additional security measures to prevent what they expect will be a sharp increase in cyberattacks, including ransomware threats, in the wake of the Russian invasion of Ukraine.

LAN Infotech, a Fort Lauderdale MSP, for example, has verified all of its customer’s firewalls and firmware were up to date and rolled out a cloud-based SSL VPN.

“Everybody needs to be aware of the potential for increased attacks,” LAN Infotech CEO Michael Goldstein told CRN. “Everyone is fair game.”

ThreatLocker co-founder and CEO Danny Jenkins told attendees of this week’s XChange conference that the Russian invasion of Ukraine has sparked a 600-percent increase in cyberattacks. He said MSPs need to be concerned about nation-state-sponsored attacks.

In addition, retired Lieutenant General Russel Honore, a decorated 37-year U.S. Army veteran, said that he expects the Russian invasion of Ukraine to lead to increased ransomware attacks here at home.

Finally, the vast majority of MSPs in a straw poll at CRN parent The Channel Company’s Xchange 2022 conference this week said they are concerned about increased cyberattacks as a result of the war.