I’m 100% sure 80% of the resources are L2-L3 booking to L4 & L5 roles.
Which means the client funds a L4 or L5 role at 45-65k but DXC have someone on 25-30k fulfilling the role.
This is rife on ALL accounts. That’s why you see kids doing senior roles who don’t even know what day it is.
Some of these roles pay DXC £600-1100 per day! Yes you read right.
So where is the money going? Simple answer!
Mike Slavino’s pockets!
Because we brought back a ton of network delivery staff at exorbitant cost and that eroded our margins and revenues
Unlikely to be true on two counts. There will be some revenue (probably not enough) associated with the work this team does, and the costs will be nothing compared to just the pay rise Mikey 2 will award himself this year (more multi-millions) for no reason whatsoever
Because we brought back a ton of network delivery staff at exorbitant cost and that eroded our margins and revenues.
Because a lot of work is done that is not billed as the people doing the work don’t charge the correct cost centers because they aren’t informed which to use for what. I know some of my BUR team don’t know what WBS codes to use for what.
With reviews at meet or exceed goals and no merit increase in years , I am agaisnt you!
DXC already got found out once for misleading investors. Like that’s anything new, we’ve see that for years.
https://www.theregister.com/2023/03/15/dxc_technology_sec_fine/
Also note most of their Project Managers are booked to the client as seniors while actually being paid the Junior PM rate. And the adage "PMs don't get overtime" is in effect here with PMs doing OOH work for free effectively. The idea is that in theory a PM should make enough money that they dont need OT and TOIL is sufficient but well hahaha
It leads to services being signed off into support without proper ORR (op readiness review) and the run support teams refusing to touch them
As our old hosting lead used to say "servers that crash when they patch dont pass orr" and neither do servers built on not fit infra
Most of their Project Managers are booked to the client as seniors while actually being paid the Junior PM rate. And the adage "PMs don't get overtime" is in effect here with PMs doing OOH work for free effectively. The idea is that in theory a PM should make enough money that they dont need OT and TOIL is sufficient but well hahaha
It leads to services being signed off into support without proper ORR (op readiness review) and the run support teams refusing to touch them
As our old hosting lead used to say "servers that crash when they patch dont pass orr" and neither do servers built on not fit infra
Im the OP and I agree, but then with 70% markups, how can DXC 'not' make huge profits?
Where is the money going?
That’s not unheard of in professional services. Billing out at $1000-$1500 per day using people selling their skills @$40/per hour and a recovery of 70%. But it has to be routine jobs where they can get away with it and (supposedly) judgement made on each engagement as to the risk of doing this on tougher engagements. DXC is the only one I know where the top sales execs don’t know their stuff, but I think that’s more about DXC not able to recruit or retain the right skills as the working environment isn’t conducive to gaining job satisfaction/reward and so ppl leave. So they try and leverage the most margin they can on the cheapest people by doing what you say. As a client (not of DXC thank god, but similar) I’ve seen this happen and its so detrimental to the relationships thereafter, I wonder was it worth messing up on the first big job when there could have been plenty more down the pipe. I think you can tell which companies are in a desperate situation that the money comes first over any real quality, delivery timescale and, god forbid, customer satisfaction. If they can get away with it, they will. Personally, I prefer dealing with companies with that give me experienced, battlescarred individuals who talk openly and leave the sales patter at the door and don’t try and give me people off the street who will ‘give it a go and see how we get on’
We sponsored a lot for the coronation of King Charles III.
Did you guys not get the message. We are at an inflection point after the transformation effort is done. So appreciate the great progress we have made and get on with the pogram. Either you are with us or against us.