I'm pretty sure DXC is rapidly losing its best employees, but what about its customers? Is it losing them just as fast? My personal opinion is that they cannot be satisfied if the employees are not satisfied and if this company no longer has a clear plan for the future.
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The number of ex-DXC customers at my new gig is stopping me from taking on new clients. In many respects, it feels like being back at DXC, only that everyone involved is happier.
Consider DXC is an inflight 707 Jumbo Jet, its still in the air but losing height .
When M1 was the pilot, he kept the plane flying (share price high) by selling off parachutes and the fuel in the tanks.
This worked for a while but when the passengers (shareholders) realised the danger they were in, it was too late - M1 didn;t care, he took one of the few parachutes left, and jumped off a rich man.
So now fast forward to today, M2 is the new pilot - hes dealing with a 707 Jumbo, thats gliding and losing height slowly - theres no fuel (profit) left to restart the engines.
M2 continuew to press the right buttons but nothing happens - The lights twinkle on and off, but theres still no fuel. Meanwhile the passengers (shareholders) don't want to bail (no parachutes for them all), they just want a safe landing with the landed plane having scrap value.
In the closing scene, M2 walks away with understandable plaudits, and a new name - "Captain Sully"
Considering the customers, it's subtle but much more insidious.
Not too long ago, a customer extended it's contract with DXC. This may sound like a win on the surface of things, like PR and marketing. If you look deeper into this (formerly) platinum customer contract, DXC will only maintain the legacy infrastructure for the next few years. All other business went to multiple competitors. It's a runoff of millions of dollars and DXC does none other than celebrating it, which is worrying.
its not losing them quickly, they just don't factor DXC into their future plans, but leave DXC to keep running their legacy environments until the time comes to turn those particular lights out (lower risk than migrating to a new temporary service provider)
So Mikey2 can make comments about how DXC are "retaining" their Platinum accounts when reality is nothing of the kind - highlighted when he could only refer to one significant client involving DXC in their migration to a new cloud platform - and so the revenue will keep slowly dropping, nothing too dramatic just a $1B or so each year