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DXC Technology divests from its Israeli IT business

EntServ Israel, which retained some of Hewlett Packard’s (HP) occupation-related contracts, sold to Hilan Group for US$ 65 million.

On April 1st, 2022, DXC Technology’s Israeli subsidiary, EntServ Israel, was acquired by the Israeli Ness of Hilan Group (TASE: HILAN) for US$65 million.[1]

DXC Technology was formed in 2017 following the merger of the Hewlett-Packard Enterprise (HPE) services division with Computer Sciences Corporation (CSC).[2] At the time, DXC Technology retained some of Hewlett Packard’s (HP) occupation-related contracts through its subsidiary, EntServ Israel, as outlined by Who Profits in the 2021 update What is HPE’s Current Involvement in the Israeli Occupation Industry?

Through EntServ Israel, DXC Technology developed and maintained the Aviv System - the computerized system of the Israeli Population and Immigration Authority (PIBA), until 2020.[3] The Aviv System processes information on all Palestinian citizens, non-citizen residents of occupied East Jerusalem and Palestinian residents of the occupied Palestinian territory (oPt). The System also included a separate database - the Yesha database -containing information on Israeli citizens living in settlements in the occupied West Bank.

The Aviv System was used to monitor movement at Israeli-controlled border crossings, including the Allenby Bridge crossing, the only crossing point permitted for Palestinians under Israeli military occupation in the West Bank seeking to travel abroad - subject to permits from the Israeli authorities. The system also monitored the Erez checkpoint, the only land crossing between besieged Gaza, Israel and the West Bank. According to a freedom of information request response from PIBA, as of April 2021, the Aviv System has been gradually replaced by the Eitan System, operated by the publicly traded American multinational technology corporation, IBM.[4]

In December 2021, EntServ Israel was contracted NIS 5 million, with exemption from tender, to expand its contract for the execution of developments in the PIBA systems until June 2025.[5] In 2020, the company was again contracted to provide biometric program development services for PIBA, also until 2025.[6] In addition, the company provided biometric equipment for PIBA.[7]

Following the acquisition in April 2022, EntServ Israel’s name was changed to Ness E.S Ltd.[8] However, DXC still retains occupation-related activity, including a Research and Development (R&D) Center in the settlement of Beitar Illit in the occupied West Bank.

For the DXC Technology full company profile

Ness A.T

Israeli information systems and technology services company Ness was founded in 1999 following the merger of six companies, making it one of the largest IT service providers in Israel.[9] As detailed below, the company provides services for the Israeli Civil Administration in the occupied West Bank and has provided different services to the Israeli Ministry of Defense, the Israeli Police and the Israeli Security Agency. Ness became part of the public Israeli Hilan Group (TASE:HLAN) in 2014. The Hilan Group is a public Israeli Software as a Service (SaaS) provider and is also active in the USA.

According to Ness A.T’s website,[10] the company provides homeland security and defense services for operational systems, “deployed and used by army forces, security agencies and suppliers of defense and security solutions,” as well as services “to the entire defense and security organizations and entities in Israel.

Service for the Israeli Civil Administration in the West Bank

Ness provides services for the Israeli Coordinator of Government Activities in the Territories (COGAT) and the Israeli Civil Administration (ICA) in the occupied West Bank.

Between 2018 and 2021, the company was contracted by COGAT to provide an outsourced project manager‏‏‏‏ for the ICA for a land registration project in the occupied West Bank for a total amount of NIS 1,662,721. [[11]][[12]][[13]]

In 2020 and 2021, the company was contracted by COGAT to provide a GIS (Geographic Information System) data editor for the ICA Surveying Office for a total amount of NIS 129,176.[[14]][[15]]

In 2019, the company was contracted by COGAT to provide an information scientist/GIS data editor for the ICA Surveying Office for NIS 202,402.[16]

The Surveying Office in the West Bank was established after 1967 as part of the ICA's activity to manage land ownership in Area C. The office's headquarters are located in the settlement of Beit El in the occupied West Bank.[17]

In 2018, the company provided ICT consultancy and assimilation services for the ICA for the implementation of the Meitar System for NIS 224,919.[18] That same year the company was contracted to provide the same services for the years 2018-2019 for an additional NIS 224,920.[19] The Meitar system is used by the Israeli Civil Administration to issue biometric ID cards to Palestinians to cross Israeli checkpoints in the West Bank. The cards contain personal identifying information and are part of the array of identification technology used by the Israeli military at checkpoints.

Services to the IMOD

In 2010, Ness Technologies and Elbit Systems Joint Venture, NessBit, were contracted by the IMOD to supply the Israeli Air Force with an Intelligence System valued at USD 25 million for a period of 4 years.[20]

Services to the Israel Security Agency

In 2015, the company was contracted by the Israel Security Agency (Shin Bet) to provide cyber courses for the Information Systems Division and also for the Defense Division in the Prime Minister’s Office, with an exemption from tender.[21]

The company is the only one certified by Unit 770 (the Shin Bet’s cyber unit) to carry out the training. The contents were built by unit 770 and delivered by professional lecturers from Ness.[22]

Services to Settlements

In July 2022, the company launched a company training center located in occupied East Jerusalem. The center was established in cooperation with the Jerusalem Municipality.[23]

Additionally, the company has a center located in the settlement of Beitar Illit in the occupied West Bank.[24]

Services to Israel Police

In 2016, Ness provided the Israeli Police Technology Administration with a system for budget planning as a subcontractor. The project lasted a year and its scope was estimated at NIS 1 million.[25]

For the Ness A.T full company profile

 

[1] Panettieri, Joe. Hilan Group's Ness Acquires DXC Technology's Israel IT services Business channele2e.com, December 21, 2021

[2] Cornell, Joe. Hewlett Packard Enterprise Completes Spin-Merger To Form DXC Technology Forbes, Apr 4, 2017

[3] Government Procurement Administration, Exempt Contract (Hebrew) mr.gov.il, February 19, 2018

[4] According to the response to a Freedom of Information request submitted by Who Profits in April 2021

[5] Government Procurement Administration, Expansion of engagement with Entserv Israel Ltd. for the purpose of developing the systems of the Population and Immigration Authority (Hebrew) mr.gov.il, December 28, 2021

[6] Government Procurement Administration, Expansion of contract with Entserv company for additional service(Hebrew) mr.gov.il, August 25, 2020

[7] Government Procurement Administration, Contact with Entserv Israel Ltd. for the purpose of purchasing biometric positions (Hebrew) mr.gov.il, July 31, 2018

[8] File with Who Profits: Israeli Corporations Authority report, extracted July 31, 2022

[9] Panettieri, Joe. Hilan Group's Ness Acquires DXC Technology's Israel IT services Business channele2e.com, December 21, 2021

[10] Ness website, Homeland Security & Defense www.ness-tech.co.il

[11] File with Who Profits: Engagements Report Quarter 4 2018 - Coordinator of Government Operations in the Territories (Hebrew) foi.gov.il, January 14, 2019

[12] File with Who Profits Engagements Report Quarter 1 2021 - Coordinator of Government Operations in the Territories (Hebrew) foi.gov.il, April 8, 2021  

[13] The Budget Key National Budget and Government Spending (Hebrew) next.obudget.org

[14] Ibid.

[15] File with Who Profits Engagements Report Quarter 1 2021 - Coordinator of Government Operations in the Territories (Hebrew) foi.gov.il, April 8, 2021  

[16] The Budget Key National Budget and Government Spending (Hebrew) next.obudget.org

[17] Survey of Israel Survey office Judea and Samaria (Hebrew) mapi.gov.il, July 2005

[18] File with Who Profits: Engagements Report Quarter 2 2018 - Coordinator of Government Operations in the Territories (Hebrew) foi.gov.il, July 3, 2018

[19] File with Who Profits: Engagements Report Quarter 4 2018 - Coordinator of Government Operations in the Territories (Hebrew) foi.gov.il, January 14, 2019

[20] File with Who Profits: Press Release Ness Technologies and Elbit Systems Joint Venture, NessBit, to Supply the Israeli Ministry of Defense with Intelligence System Valued at $25 Million. May 3, 2010

[21] Request for exemption from tender: Prime Minister's Office/Ness A.T. (Hebrew) Read it Now, March 14, 2015

[22] Ibid.

[23] Suvilia, Lee. NESS is launching a first-of-its-kind technology employment and training center in East Jerusalem (Hebrew) Walla! NEWS, July 18, 2022

[24] Ibid.

[25] Hatoni, Yossi. The Israel Police launched a SAP system for budget planning (Hebrew), People and Computers, August 18, 2016