Been out of DXC for a couple of years now (DXC ANZ) so decided to check out this forum to see if things have changed. Unsurprisingly not much has changed at all. Key concerns are still lack of pay rises, revenue going backwards and good people leaving.
Regardless of this DXC seems to somehow keep plodding on! The ANZ SLT is the same as it’s been for the last 8+ years so no new blood joining or new ideas.
Almost like the org is too big to fail?
6 replies (most recent on top)
@1zgu+1g0Towkn This anon gets it. The decline is slow, but steady. It is subtle, yet insidious.
No matter what DXC does, it will continue to decline. It will decline to a point where it becomes naturally sustainable with respect to the company's performance. Remember what the zoo keepers tell you: "it is inhumane to feed the animals at the park, otherwise they get lazy".
its not so much a case of "too big to fail" more a case of it takes time to runoff all the revenue, large accounts slowly migrate away as contracts reach renewal points, new RFPs don't go to DXC, and existing scope slowly shrinks. Not worth the risk handing legacy to a new provider so let DXC keep the lights on in legacy until they are no longer needed. DXC are not considered though for any new business/future work. They are not considered a strategic partner.
That explains the revenue trajectory (slow but very steady decline)
I know I heard that joke before but I had forgotten it and I didn't see the punchline coming. Thanks for sharing!
I am sure everyone knows this little tale as its been round a while. This describes DXC and what is occurring on out "journey" to a tee;
A new CEO was hired to take over a struggling company. The CEO who was stepping down met with him privately and presented him with three numbered envelopes. “Open these if you run into serious trouble,” he said.
Well, three months later sales and profits were still way down and the new CEO was catching a lot of heat. He began to panic but then he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, “Blame your predecessor.” The new CEO called a press conference and explained that the previous CEO had left him with a real mess and it was taking a bit longer to clean it up than expected, but everything was on the right track. Satisfied with his comments, the press – and Wall Street – responded positively.
Another quarter went by and the company continued to struggle. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, “Reorganize.” So he fired key people, consolidated divisions and cut costs everywhere he could. This he did and Wall Street, and the press, applauded his efforts.
Three months passed and the company was still short on sales and profits. The CEO would have to figure out how to get through another tough earnings call. The CEO went to his office, closed the door and opened the third envelope. The message said, “Prepare three envelopes.”
The ANZ SLT has promoted itself to Asia-Pac roles (nepotism) and running Asia from here shows how little they know (or care) or know why its not performing. Cant manage what you don't understand. But what they do understand is milking it for all its worth and inflating their net worth and bank balance, whilst screwing these doing the work.
Plodding is the word, they don't know really know what to do or why there is major attrition and why the business is not growing, but then again DXC is in the commodity end of business and old fashioned ITO which is a dying business and merely re-badging other "partners" services (i.e. AWS, Microsoft). Alliances that all vendors have. So no differentiation but its all the employees fault we are not growing.
So what is failure ?
Certainly management sent know but as the bank balance sells they don't care.
Yep that's what people said about US jugglenaults Pan AM, TWA; brought down by mismanagement, misreading markets / sectors they were in, selling off invaluable assets for quick buck $$ return for CEO, board and share holders
The same can be said about DXC - muddled steerage and making thousands redundant, loosing invaluable experience with customers receiving unsatisfactory service and eventually breaking away from DXC.
Share buy back is good way for DXC to temporary re-boost share price, for CEO, CFO and board to make an extra bonus before leaving company with more debt for next CEO to re-start again - but without improving the core service or addressing employee and clients issues they have with DXC management.