From what I can tell as an outside observer DXC was making little money on the services they offered BAE. The whole reason the BAE account was retained was to pad revenue and shove it into FDS to hide the margin drag. Basically this let DXC pretend like the business was doing better than it actually was. The one exception is BAE's archaic 1970s era mainframe infrastructure that no one outside of DXC will touch. Since BAE is retaining DXC for this service I'm guessing DXC does make a nice chunk of change on that. If what I've said above is correct then it seems like pulling FDS into DXC was the right move. This then implies that there's someone relatively higher up with some brain cells. Anyone know who's call this was???
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Dear DXC,
Good riddance.
Love from BAE.
Suppliers only supplying what the contract says (and charging for extras) and customers holding the supplier to the terms of the contract and seeking penalties for missed delivery...
And while that sounds obvious, it's definitely not done in every case. Sometimes the outsourcer wins (with pushover clients) and sometimes the client kicks the supplier into submission.
That's the reality of outsourcing
@dda+1tWNReIO I'm not sure I understand your point. Can you d-mb it down a little?
legacy systems., mainframes ante still supported by the vendors. Instead of thousands of system admins you have maybe two per mainframe. Mainframes today are better than Unix, better than Windows and is the way of the future!
DXC is pretty bad at everything. So many colleagues who should know how to do stuff, either don't, can't or just won't. It's become impossible to make any progress. No wonder there is no money for a pay rise. I've joined team scuttle the ship and hoe to get my redundancy and retire early.
You do know that contract management is the key to outsourcing don't you? That's the strategy both the supplier and the customer need to game. Dxc is terrible at it and some customers (including bae) have the whip hand. Others don't do so well and that's where dxc make money.
This struggle between contracted companies isn't unique to dxc but we are pretty bad at it.
BAE expect everything for free. Nobody else will take legacy systems. It doesn't mean DXC make a profit. Nobody touches it incase it breaks. Huge penalty clauses apply when it does. Note the when!