https://seekingalpha.com/news/4068365-dxc-technology-advances-amid-renewed-takeover-speculation
13 replies (most recent on top)
Not sure who would buy them. Every single project under this division is majorly in the red. One is well over 100 million in the red and another one heading there. They just had more layoffs getting rid of more of there most knowledgeable resources and going to more offshore usage which consists of resources fresh out of college and no business knowledge at all on Life and NO knowledge at all of how to develop on their applications. Believe me, I know what I am talking about. They have absolutely noone left that has any knowledge. What ever poor company buys them will be in for a shock. The whole division is now run by offshore staff all the way up the chain. Hence why the loses are getting larger and larger!
BTW at some point in the future DXC will be a thing business students will learn about.
How a half baked mega merger is so ill conceived that it destroyed everything.
Whatever the numbers for Insurance are I don't know but what I do know is that there is in recent years more revenue from GBS than GIS and that the annual rate of revenue skrinkage is lower in GBS than GIS.
The only problem with the GBS sell off is that presumably there is some overlap in business between the two - ie a customer wants a project for X and that consists of GBS and GIS components.
The loss of GBS could further impact GIS sales.
Not entirely sure what the gameplan for GIS would be after that sell off... nobody wants to buy infrastructure services... well not unless its for some dog sh1t price.
To fix GIS as a standalone is beyond the capabilities of any management I've ever seen at DXC thats for sure.
the $382M referred to just one quarter (the most recent) so that roughly tallies with about $1.4B annually ($1B insurance + $400M BPS) in the previous post
but thats in a $13.5B-$14B company overall so still only about 11%
@vmd+1r9tEuUn while I agree with spinning it out I do want to point out that it's about $1 Billion in purely insurance related sales annually. With non-insurance BPS accounting for an additional 400 Million. This actually probably under counts it too since the applications buisness gets credit for the lloyds insurance market place modernization. Presumably that team would follow the new entity
The insurance business in GBS is also fine. The relaunch of that business is going ok and the sales are stable
$382M up from $371M a year ago for Insurance + BPS combined is too small to carry the rest of the company as a deadweight - its 11% of revenue, and nowhere near enough to carry 130K employees - its better off separated and spun off
@gxk+1r9tEuUn The insurance buisness in GBS is also fine. The relaunch of that buisness is going ok and the sales are stable
Good luck gbs boys. We wave you off in the last lifeboats while we stand on the deck of the sinking ship
Band has been hired, words to "Abide with Me" distributed to all remaining (GIS) passengers ...
Oh and @mci+1r9tEuUn
Yes dxc was only ever a vehicle for breaking up. M2 foolishly thought it wasn't and imagined he could fix it up and keep it going. He couldn't because fundamentally it was never possible.(not that I believe he was ever capable)
His departure I suspect was after the major shareholders told him to stop trying and he threw teddy out of the pram.
Gbs is worth money. Particularly luxoft. M1 actually pulled a good call with them. Not only buying something good but also not trying to drag it down with dxc red tape. They were left alone to do their own thing.
The only problem of course in selling that is that it's the only growth element in dxc.
The right thing to do with the money would be to fix the problems in what is left but we all can see what will happen instead...
Good luck gbs boys. We wave you off in the last lifeboats while we stand on the deck of the sinking ship.
This feeds the impression most have.
Management and directors never had the plan to evolve and grow the business.
DXC was born a dead horse, which should be sold per the weight.
Still some are asking for a general pay increase. This will not happen. Don't know when the last employee realises that they are only some cars in a Monopoly game.
The source being the person who declared first that m2 is gone( in December) has leaked the info that the sale is very close to be done. GBS being the coveted asset sbd and they will get pay rises in April to ensure that business stays intact.
Let's see.
too early and difficult to judge whether this is real - although it could be consistent with the board giving up trying to find and appoint a real CEO, and just making the interim permanent with the single brief to dispose of the company as a whole or in parts ie to do what they had been waiting for Mikey2 to achieve for all these years, but he got too greedy