Thread regarding DXC Technology layoffs

The major reason for DXCs decline in terms of the BAE contract stems from redundancies from earlier last year. They struggle to retain staff who go above and beyond and are replaced by inexperienced apprentices, who are on a better rate of pay in comparison to staff who have been there longer, it's demoralising. Management don't seek assistance from experienced, knowledgeable staff who crave improvements. The biggest issue is in-house disagreements between support teams and a lack of ownership. They focus more on numbers rather than quality.

Likely to build up their own links and good reputation with BAE as priority 1 and post DXC work for BAE as preferred sub-contractors and freelancers, rescuing DXC will not be in their immediate minds compared to full time DXC employees (provided they are motivated enough to care for DXC)

Lots of sub contractors have started on the account to salvage whatever revenue they can for DXC.

The reality is that Lawrie owns a huge stake in the company, and is President, Chairman of the Board (which is stacked with his people) AND CEO. He is an absolute monarch at this point. If he ever goes down, he's talking the entire company with him.

Any sensible person would have taken the massive bonus he got from the merger (anywhere from $20 to $40M, if I remember correctly, depending on his split with the rest of the board) and retired to a life of venture capital and leisure. The fact that he didn't means he's not leaving voluntarily unless he's at death's door, and he's positioned himself so there's no way he can be kicked out INvoluntarily.

2 major accounts hold over 50% of revenue and both are actively looking to deleverage from DXC (only a matter of time) .

This is why ML is deep cutting DXC UK - There is zero chance it can survive now as a separate supplier.

CapG may be terrible... but there is absolutely no way they can be worse than DXC!

Cr@p Gemini very funny, a friend worked for them I thought CSC at the time were bad but they sounded a lot worse.

If anybody wanted proof that in source isn’t the model, Barrow was up for renewal just this year, and they didn’t in source.

I’m the OP. The BAE model isn’t to in source. I know we all want that, even I do too given I work on the account.

And to answer the question about the staff that TUPE’d into BAE about 7 years ago in the CSC days... it’s not because BAE wanted them in house they went. It’s because CSC didn’t want them on the books anymore. I worked on the programme and it was called Project Atlantis.

Good on Bae but follow your threats and actions through - in-source as much as possible inhouse as you did (pre CSC days) and hopefully building up resources now some very good technical and management staff

Can't say I'm surprised!

I know of another $450k a month contract that's going to be lost in the near future as well if DXC keeps this sh-- up and keeps cutting resources and outsourcing.

Good to be specific about lost business from big clients. I remember hearing CSC won a large outsourcing contract at MetLife for $1B a few years ago; anyone know if they are losing that one too?

This news doesn't surprise me. Speaking from personal experience, the rot really set in when CSC transmogrified into DXC, when as noted by @ZplNzhH-uid, BAES chose to transfer a number of ex CSC staff back in-house. Their intentions at this time were clear.

This client likes to use a wide range of technologies to deliver its products, but this strategy doesn't fit with its current outsource supplier who wants to consolidate solutions and preferred partners to a minimum. So increasingly, BAES engages with software vendors and suppliers where DXC has little skill and therefore adds no value to their business.

It's plain to see that DXC management and board are out of touch with many of their customers, particularly if they've manage to lose a large global account they've run for over 20 years.

Think on, Mike Lawrie.

Your days in charge are numbered and rest assured there are many people counting down the days till your gone.

Not in house, Barrow (DXC bid for this and tried very hard but failed this year) is serviced by CapG, and they seem to be getting an incredible service.

The MD for Barrow is like a hero in BAE. All the other business units are looking to follow their model and sc-ap the one large IT contract model and go SaaS.

Oh and these are not rumours or stuff I’m dreaming off, I’ve heard this first hand and if you have any contacts at senior director level or above at BAE ask them. And also ask them about the meeting with the board of directors @DXC too.

That client have been pairing back their contract for years now.

I'd heard a while ago they were keen on taking it fully in-house... they certainly took a load of CSC people over a while back.

I am sure it'll be fine