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DXC Issues (Updated March 18, 2018.)

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

Note that employers can mail W-2's as late as January 31. Expect your W-2 by mid-February.

Contacts: Contact Information for DXC Employees and Alumni    Corporate headquarters: https://www.dxc.technology/contact_us

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 Checklistwhat to do before losing access to company internal systems... and in the following few weeks.

Stock and HPE options  

Perspecta spinoff is expected to be completed and go public in May 2018. Merger of U.S. Public Sector Business of DXC Technology with intelligence community contractor Vencore Holding (3,800 employees) and background investigation firm KeyPoint Government Solutions (3,700 employees.)  Announcement   Transcript   DXC update

Keep in mind that DXC is a completely separate company from HPE.

Contingent Worker policy reported by a member in March 2018:

"4.0 Engagement of Former HPE or DXC Employees as Contingent Workers or Credentialed Visitors

Policy Intent: Former HPE or DXC employees must comply with a waiting period before being engaged as a contingent worker or credentialed visitor on an DXC engagement. Former employees who are ineligible for rehire are ineligible for placement as contingent workers or credentialed visitors.

Policy Statement: Former HPE or DXC employees must wait for a period of twelve months [emphasis added] after termination from HPE or DXC , (regardless of leaving under a workforce reduction (WFR) program, mutual separation agreement (MSA), as a retiree or their own resignation) before any re-engagement as a contingent worker (CW) or credentialed visitor (CV) on an DXC engagement."

Regular employment:

- Moving to "Dynamic Talent Cloud" short-term employment system. Continued increase in offshoring. Starting "Digital Transformation Center" in New Orleans, which will work with local colleges "developing a next-generation IT workforce." Preparing to spin/merge US Federal Government business with two other companies.

- 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 local account contact -- or roles at accounts that specifically require local employment, US citizenship, or a security clearance.  More: Employment - Layoffs - Returning  

First -- Which Company am I a former employee or retiree of? HPI, or HPE, or multiple companies? Given HP's complex history of  acquisitions, divestitures, and spinoffs, the company that you are a former employee of may not be obvious. Before contacting one of the HP-related companies, check here: Which Company 

Email forwarding

Employment and salary verification

HPAA's information and links specifically for people from EDS

For those transitioning to DXC:

- 401(k) Members report that the next 401(k) match payout will be on the date of their transition.
- Classified as a former employee or retiree of HPE. Treated as though you left HPE to join any other company. Entitled to whatever retiree coverage you qualified for at the time you left HPE. (If qualified for the "Pre-2003" retirement program, classified as a retiree of HPE but medical benefits administered by HPI.)

For those being laid off by DXC:

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

Employment outlook:

"The war for digital talent is vigorous and creative
"The major digital re-platforming of the enterprise will signal a significant shift in demand for skills ranging from operating computers to information integration, analytics and information governance. These digital skills are incredibly scarce and demand is high.
"To increase scale from a finite talent pool and maximize productivity, companies will need to leverage team-based distributed workplace platforms that use machine learning, intelligent automation, natural language processing and other technologies to drive productivity. In addition, techniques such as crowdsourcing, bring your own teams, incubators and strategic talent acquisition via “acquihires” are on the rise to access talent. Talent will decide who wins and loses in the next decade."
-- December 12, 2017 DXC Press Release


DXC announced plans to "...establish a Digital Transformation Center in Louisiana, creating approximately 2,000 jobs in New Orleans over the next five years. DXC’s partnership with the City and State will extend to local educational institutions... to recruit talent, develop technology education programs, and provide ongoing learning and development opportunities for employees. ...developing a next-generation IT workforce."

-- November 13, 2017 DXC Press Release


"digital transformation... digitizing their business process and workflows..."

Combining US Public Sector business with Vencore and Key Point.

"We reduced our labor base by about 4% in the quarter through a combination of automation, best shoring and pyramid correction. We also continued to rebalance our skill mix, including the addition of almost 4,800 new employees and the ongoing retraining of the existing workforce. Also at the end of the quarter, our nearshore and offshore labor mix was 54.5%."

"The continued challenge we have is to continue to attract and retain and retrain the talent necessary to capitalize on those opportunities."

"As we rethink our labor strategies, we're thinking much more about college graduates. We're thinking about internship programs. We're thinking about co-op programs."

-- November 11, 2017 Earnings Call


"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 US payroll of the company (which includes Enterprise Services LLC and Computer Sciences Corporation), determined from the most recent hire date.


See also...

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


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