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DXC Issues (Updated August 22, 2017.)

This topic is discussed on the HPAA's Transition Forum.  Confidential email for corrections or comments: info@hpalumni.org

Summary: A "labor war room" to track every new employee hire. "Labor cost cuts for DXC will begin this quarter and accelerate in coming quarters..."

Fortune article summarizing breakup of Hewlett-Packard into HP Inc, Hewlett Packard Enterprise, DXC, and Micro Focus.

ASAP Checklist what to do before losing access to HPI or HPE internal systems... and in the following few weeks.

Stock and HPE options  

Returning  

Retiree of Which Company

Email Forwarding

For those transitioning to DXC:

- 401(k) Members report that the next 401(k) match payout will be on the date of their transition.

For those being laid off:

- Unlike HPI and HPE, members report that DXC does not offer transition services.
-
See details of DXC US Severance Policy at end of this page.


Employment outlook:

"We're bringing in a lot of kids... we took quite a few people out in the first quarter, but we also hired 6,000 people in the first quarter. And we need to do that to continue to refresh the workforce."

"We've aligned our corporate functions... including a significant shift to nearshore and offshore low-cost locations... Our low-cost labor mix was 52% at the end of the quarter."

"There's more synergies that we're going to get incrementally in the second quarter. That will be repeated 3x, and there'll be more synergies in the third quarter, so on and so forth."

"The DXC dynamic talent cloud, a smart crowdsourcing platform that enables us to bring new people and skills to DXC as we need them. And we're leveraging this platform to fulfill nonstandard service requests and established tasks, such as testing."

-- August 8, 2017 Earnings Call

 

"The company has a 'labor war room' in place... to track every new employee hire and departure... Labor cost cuts for DXC will begin this quarter and accelerate in coming quarters..." CRN interview May 25, 2017  

DXC is not enforcing the formal HPE policy against rehiring people who took EER or severance. However, rehiring reported by members has been limited to positions that require highly-specialized skills or continuing in-person account contact -- or roles at accounts that require local employment, US citizenship, or security clearance.

CSC employment before merger: 60,000. FY17 Annual Report 3/31/17 (pdf file page 20)

Post-merger total employment: 170,000.  CRN interview April 4, 2017

Geographic distribution of pre-merger employment is not given but can be estimated from the table of owned and leased property square footage by country. 35% India. FY17 Annual Report 3/31/17  (pdf file pages 33-34)

 

Find out what the company is telling Wall Street about employment prospects and strategic issues that will affect your career. You can read the transcripts of the quarterly analyst conference calls at https://www.dxc.technology/investor_relations

Key Q-and-A exchange... Goldman Sachs analyst: "...a sense about where the split lies of those low-cost geographies..."
DXC CEO Mike Lawrie: "I'd say somewhere in the neighborhood of 65%, to maybe in some areas 75%... Some of it will be in India. But we have a lot of capability in other delivery centers like Malaysia, Kuala Lumpur, Vietnam, centers in Eastern Europe... a major new center in Puerto Rico, to do a lot of our ITAR compliant work... some lower-cost locations in the US."
-- November 3, 2016 Earnings Call

 

DXC strategy -- and therefore employee skills needed.

DXC Technology is looking to introduce key vendors like ServiceNow and Oracle and sell more Amazon Web Services into the legacy HPE Enterprise Services customer base.

"Because of the relationship HPE has with Microsoft, HPE Services was much slower to adopt Amazon Web Services than CSC was... HPE is a premier partner of ours. A lot of our solutions are HPE prime.

"We have well over 1,000 certified Amazon cloud staff... And many of those -- a large percentage -- are with professional certificates... We have 170,000 employees, and we're training them.

"We are not signing up for any more traditional deals that don't have digital included... Once in a while, we'll get the weird ask of 'mess for less,' which is 'take over my traditional stuff for less,' and we just won't participate. We'll leave that to the Indian firms.

"What technology independence does is allow you to keep up with the best-in-breed product, versus a set product in a solution that may be second, third or fourth... We've gone from a combined set of offerings of about 500 down to 84 offerings and nine offering families... We're making a shift from building what our customers ask us to build custom, to much more of a standard offering... This is about upselling into the digital offerings."

--Mike Nefkins interview with CRN 

 

Mphasis. DXC took over a relationship that HPE had with Mphasis, which was majority-owned by EDS. DXC announcement. As of March 2017: Mphasis has 22,000 total headcount; 24% of revenue from HPE/DXC.

 

DXC US Severance Policy as of April 2, 2017
No severance if you get an offer to work for the client, or an outsourcing vendor taking over the work, or a successor contractor. No severance if less than 20 hours per week, limited term, temporary, contingent, independent contractor, or not paid directly through the Company's payroll.
Up to 3 years of service: 2 weeks severance
3 to 5 years: 4 weeks
5 to 9 years: 5 weeks
9 to 15 years: 6 weeks
15 years or more: 8 weeks maximum
Years of Service: Each 12-month period of service during which an employee has been on the U.S. payroll of the company (which includes Enterprise Services LLC and Computer Sciences Corporation), determined from the most recent hire date.

 

Corporate headquarters

DXC Technology: https://www.dxc.technology/contact_us

 

See also...

Breakup-related issues:   DXC stock and options   Email Forwarding   Returning   Verifying Employment   Retiree of Which Company

 

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