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."
November 13, 2017 Press Release
transformation... digitizing their business process and
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
"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
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
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
Key Q-and-A exchange...
Goldman Sachs analyst: "...a
sense about where the split lies of those low-cost
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
interview with CRN
Mphasis. DXC took over a
relationship that HPE had with Mphasis, which was majority-owned by EDS.
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
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.
DXC stock and
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