Thread regarding DXC Technology layoffs

Its nothing personal..Just business

DXC is package- shark. A package-shark is typically a roving business (or group of executives) , which acquire other businesses through buyout/ merge/ takeovers, etc. Typically, they strip off all the viable assets, and discard (or in some rare cases, rebuild) the remaining carcass thereafter. In most cases, a package-shark business excels at the business presenting 'feel good' fiscal reporting to the shareholders...and they do not necessarily have a mastery over the products and services, which they offer in the market place . If they can manage existing portfolios (profitability) as is , they will attempt to sustain them.

One of those portfolios is called 'Enterprise Services (ES) " (a mix of legacy apps management and new apps support) . To put this in perspective, the ES portfolio was initially developed in former company; EDS. It was passed forward through HP, HPE and now DXC.

If history has taught us anything here, its that ES still thrives. And to date , there are three entities which have failed to manage and make it materially profitable. So, What makes us think that DXC would turn that around?

DXC was formed up through the merge between CSC (A.k.a. reputed as part of the Beltway bandits) and HPE spinoff(HP) under the auspices of pure-play strategy. Pure-play just means that two companies , who do exactly the same thing (i.e. ES) are brought together to team up and double down on the strengths and attributes. This also effectively removes competition between the two entities. .

You'll notice that HPE didn't reach out to simply buy up CSC..(That's because HPE missed its fiscal 5-year numbers with ES and couldn't justify any further investment efforts). Likewise, CSC didn't reach out to buy up HPE (That's because they didn't have the leverage to, due to their own, sinking profit margins) .

SO, HPE and CSC found mutual escapes to dodge the ES long term disasters: 1) HPE drops ES like a bad Habit, and gets a tax write off. 2) CSC gets to feed off the brand of reputation generated by HPE... in hopes of surviving...

As with all Package-sharks, the ensuing layoffs are always first order. In my case, I happened to hit the wheel of misfortune due to 1) On the bench at the wrong time, 2) at a Salary that profoundly exceeds the labor rate for this region.

Never mind that I served the ES portfolio for 10 years, making money for them when I wasn't on the bench...

Its nothing personal though , its just business, right?

So I am inclined to inform the academic community of emerging developers and engineers .. if only to parlay the truth; that if you expect training , career growth paths, longevity, security and even a modicum of wealth from what amounts to a 'resource brokerage firm', you are barking up the wrong tree... But, to be fair, you can gain some marketable experience... Just understand that you don't own it, nor the fate of its direction.

My recommendation is to seek your growth directly with the clients , who only reach out to this firm because they don't know any better ...Cut out the middle man...

by
| 2471 views | | 10 replies (last July 22, 2017) | Reply
Post ID: @OP+OhoPeop

10 replies (most recent on top)

'Well Nefken's is another EDS bum, who ran the company to the ground. Too bad that Ann Livermore left the place.

by
| | Reply
Post ID: @7itj+OhoPeop

Hindsight: I remember 6 months ago, watching Nefkins chugging down a large pitcher of Kool-Aid at one of his "I love me" quarterlies. (Even Meg Whitman didn't have the courage to touch that) . I have learned valuable intel from observing this DXC Debacle... Everything from the shoe-shuffling of HPE executive managers to CEO sidestepping omission; aka deliberate concealment of disclosure about ensuing layoffs. The game of Trust has new dimension. Waiting to see who ties DXC to the railroad tracks in the next couple of years.

by
| | Reply
Post ID: @6zmp+OhoPeop

This is exactly why I left HPE before the DXC spinoff. WFRs continue at DXC with more in sight (remember the town hall in Plano before the reaping where the #1 financial priority in Nefkens' presentation was executing on WFR plans? everyone clapped). Nothing personal? When "just business" jacks with employees' personal lives and only sees them as liabilities and pawns for profit, it can't help but get personal. This is a huge difference between bad and good companies. But, that's the reality. Be aware, stay relevant, rise above, and move on if you feel you need to...

by
| | Reply
Post ID: @2lac+OhoPeop

Not sure about the package shark thing, but I do know that the client on the account that I am on had addendums added to their contract because they are EXTREMELY uneasy about the whole DXC thing. As to layoffs, my team, which was around 175 people when I started, is down to 4 onshore people with last Fridays biweekly boot-out-the-door.

by
| | Reply
Post ID: @2oyg+OhoPeop

the WORST is yet to come, with additional bulk layoffs coming in July - Sep quarter, hold on tight

by
| | Reply
Post ID: @2qpg+OhoPeop

Ex EDS ES here. From a ground level perspective we had a steady stream of interesting projects with managers who cared about quality and were engaged in all aspects of the engagements. Clients invited us to embed in their business functions Which promoted teamwork and reduced project friction . HP drove the EDS model into the dumpster proving their guys had no clue how to run enterprise projects. The sale of EDS to HP? A few made a lot of money and most of the workers carried on as before until they could not which is how HPE/CSC/DXC is where it is today.

by
| | Reply
Post ID: @2ztu+OhoPeop

Now all those ex GM cronies are migrating back to GM. GM is another company that is biding there time before they go belly up again. Employment at the big three is a club. Surprising they can stay in business.

by
| | Reply
Post ID: @2mmf+OhoPeop

The initial post is a pretty good unbiased summary except that HPE's ES business was reasonably okay if NOT flourishing. It was the EDS cronies that ran this business to ground after the merger with HPE.

There was couple of smart execs in legacy HPE running the HPE's Services business (read Ann Livermore etc) - she had cancer and had to move out of her day to day job and just help out in the board as director. The EDS cronies took over from there and ensured that it went south. They were the smart asses who screwed GM !

by
| | Reply
Post ID: @2fia+OhoPeop

Good Question... I think there are a couple of things that might protect DXC from certain compliance issues (ANd I'm just guessing) 1) New IPO, Company etc may not be held to the same service level requirements, waivers, etc . 2) I think HPE kept hold of the really lucrative and critical contracts while handing off a bunch of dying contracts (I speculate) .

I had 3 accounts assigned , none of which had any significant work and two of which were dying off anyway . Too many chefs tending that last one. I understand why they let me go... but it doesn't ease my disgust about it ...

by
| | Reply
Post ID: @aga+OhoPeop

Did DXC inherit the contract terms for in flight projects or were they able to change the terms and penalties for being out if compliance? Because if DXC is spinning as badly as described there is no way the company is meeting client service agreements.

by
| | Reply
Post ID: @iad+OhoPeop

Post a reply

: