Hey guys my last post was deleted for some reason. But there where 2 new comments that I unfortunately didn't get to see. Today it was reported that Lloyds negotiated a $100 million break option with DXC. I thought the timing was interesting as it follows on DXC reporting that they violated Russian sanctions. Furthermore this is all in the wake of DXC's CFO, Luxofts COO and CEO all leaving the company. Given that Lloyds is under a significant amount of scrutiny for russian maritime sanctions I was wondering if this may all be connected. DXC and Lloyds have violated Iranian sanctions in the past so I wouldn't be surprised if Lloyds is getting nervous given the history here. I also find it interesting that DXC has hired 2 new american politicians for their board. Can't help but wonder if these guys are there for damage control? Any information would be helpful
12 replies (most recent on top)
@1weq+1nFcBonz when was the BMW contract terminated?
Not the first client paying to get rid of DXC.
Ask someone who knows what BMW negotiated to terminate the contract early.
even by DXC's consistently-fail-to-deliver standards this is something of a record.
$100M paid by a client to DXC to go away immediately, and never be seen again
That's one spectacular way to shore up this quarters revenue!
Also the title is interesting "DXC yet to disclose Lloyd’s transformation project break option". 1 Why would DXC disclose such a thing and 2. It's an option to break the contract. It's not nessisarly been broken yet.
Sorry forgot to put OP as my username in the below post
@ery+1nFcBonz So this brings us back to the original question. Does anyone have details on why Lloyds broke up with DXC? I relize poor service is the most likely cause. But I'd really like to know the straw that broke the camels back. $100 million seems like a lot for lloyds to pay just to get rid of DXC. Matter of fact it's equal to 2% of DXC's entire value. I understand this a long shot but I'm very curious. Alternatively has anyone read the articles in question?
This article definitely implies that it’s Lloyds breaking…
Also says DXC haven’t publicly announced it either so that’s probably why the previous post got removed!
https://www.theinsurer.com/news/dxc-yet-to-disclose-lloyds-transformation-project-break-option/
imb+1nFcBonz oh wow you could be right... you make a very good point thanks. I read it as Lloyds wanted to break with DXC. It's kinda hard to tell from just a couple of sentences. If youre rught why would DXC want to break the exclusivity?
Doesn't the article suggest it's DXC that wants to break the tie? Not sure the relevance of that.
@mko+1nFcBonz OP here this is the news I was reffering to. Although I don't have full acess to that article which is why I'm posting here. Someone said it was about poor service on my deleted post. I'm hoping for more granularity although that maybe unrealistic.
@lkt+1nFcBonz OP here the CEO and COO of Luxoft left basically at the same time. The CFO of DXC announced he was leaving some time durring the summer for "personal reasons". This was when they reported their earnings and Id guess that it lines up with the Luxoft exexutives leaving. What's suspicious is a couple of days later after the CFO made that announcement DXC disclosed in their 10k filing that they are self reporting a possible Russia sanctions violation in connection to the sale of Luxofts Russia buisness. Seems to me that these people where let go in connection with that. I'd be able to dismiss it if this where executives from other parts of the old CSC, xchanging or HPE buisnesses but the fact that all these people have a connection to Luxoft Russia makes it really weird.
Did all three Amigos leave at the same time?
btw - rarely you see real news like this in the forum. otherwise it is standard whining about pay rises.
https://www.theinsurer.com/news/lloyds-agrees-break-option-with-blueprint-modernisation-partner-dxc-technology/