{"id":5676,"date":"2023-12-21T22:20:23","date_gmt":"2023-12-21T22:20:23","guid":{"rendered":"https:\/\/www.horsesforsources.com\/?p=5676"},"modified":"2024-09-11T11:38:31","modified_gmt":"2024-09-11T11:38:31","slug":"not-even-god-can-save-dxc_122123","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/","title":{"rendered":"Not even God can save DXC!"},"content":{"rendered":"

DXC Technology’s latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who’s passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.<\/p>\n

Let’s not kid ourselves; this isn’t your usual passing of the baton \u2013 it’s more like handing off a ticking time bomb. The company’s market value is literally running on fumes at barely a third of its revenue numbers. And that’s not just a hiccup \u2013 it’s a full-blown identity crisis:<\/p>\n

\"\"<\/p>\n

Let’s not forget our trip down memory lane from four years back, where we laid out the gauntlet of challenges and opportunities for DXC (remember this blog<\/a>?).<\/p>\n

So, where did Mike Salvino go wrong?<\/strong><\/span><\/h3>\n

DXC made zero acquisitions under Salvino and gave all their money back to stakeholders to prop up the share price.<\/strong> He could have made acquisitions to bolster strengths in growth areas such as cloud migration, AWS services, analytics, Azure, etc., or double down on industries where DXC could have real differentiation, such as insurance, private healthcare, energy, and manufacturing.\u00a0 The Luxoft analytics business had real potential, and little was done to build on the firm’s insurance software and IP.<\/p>\n

Sold a lot of pieces but didn\u2019t build new capability fast enough.\u00a0<\/strong> For example, its US State and Local Health and Human Services Business (Medicaid) was sold to Veritas Capital for $5 Billion, but that money was never reinvested.<\/p>\n

Stabilizing delivery on infrastructure doesn\u2019t mean people will buy transformation.\u00a0<\/strong> Just look at the similar price-to-sales ratio to Kyndryl<\/a>, another firm struggling to sell transformational services tied to its commodity infrastructure business.<\/p>\n

Very limited diversity on the leadership team.\u00a0<\/strong> DXC’s leadership is almost all US men… diversity wins deals, and many enterprises want to work with firms with a strong gender and cultural mix.<\/p>\n

Very limited stability on his leadership team.\u00a0<\/strong> Salvino hired and fired at least 15 senior leaders and churned through 3 CFOs in 4 years, one of whom publicly sold off his stock.<\/p>\n

What challenges face Raul Fernandez?<\/strong><\/span><\/h3>\n

Fight back in a cut-throat market.\u00a0<\/strong> We’re in an IT services market that is suffering from flat to negative growth<\/a>, and even the most successful IT service providers are reporting low single-digit growth at best (Accenture reported barely 3% growth yesterday).\u00a0 What Hail Mary can Fernandez conjure up to convince enterprise leaders to take a bet on this train wreck of a company?\u00a0 When you have aggressive outsourcing juggernauts, such as Accenture and TCS, to contend with, where can you realistically play when you’re this far<\/em> behind?<\/p>\n

Find some way to survive the GenAI revolution.\u00a0<\/strong> Then there’s GenAI, the Chicxulub meteor that will result in wiping out the dinosaurs in the IT services industry. Will DXC dodge this extinction-level event, or will they be left behind like the dinosaurs? With Fernandez at the helm, it’s do-or-die time, and we are watching closely to see if DXC can pull a phoenix and rise from the ashes.<\/p>\n

Find a raison d’\u00eatre for DXC to reinvent itself.<\/strong> DXC has not been able to create a true brand association and find its mission. Financial restructuring to bring it back to life is also going to be hard. It has not even been able to find a buyer for its BPO business that it has wanted to divest for several years now.\u00a0 Simply put, there is no strategy, and investors have little confidence left in the firm.\u00a0 Maybe Fernandez will find a transformation acquisition or two to redefine exactly what DXC is and create a path forward to long-term survival.<\/p>\n

The Bottom-line:\u00a0 Raul may not be God, but he needs to find a saviour<\/span><\/h3>\n

Raul Fernandez is only interim chief, so his task is most likely to search drastically for a path to salvation for the firm and install a dynamic leader to take them there.\u00a0 This may be the toughest tech CEO turnaround task since Steve Jobs returned as interim Apple CEO in 1997, faced with the task of making Apple profitable again after losing over $1bn in 1996.\u00a0 How did he do it?<\/p>\n

1) Rebuilding the core products and value,<\/p>\n

2) Prioritizing the customer experience,<\/p>\n

3) Collaborating with rivals, and<\/p>\n

4) Reinventing the company culture.<\/p>\n

Perhaps these four areas are the best guide to follow…<\/p>\n","protected":false},"excerpt":{"rendered":"

DXC Technology’s latest play is to bring Raul Fernandez off the bench as the new interim chief and move on…<\/p>\n","protected":false},"author":3,"featured_media":5678,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[867,879,48,51,953,1092,1073],"tags":[223,1052,555,619,1158,1013],"organization":[1157],"ppma_author":[19,38],"class_list":["post-5676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-bfsi","category-business-process-outsourcing-bpo","category-cloud-computing","category-customer-experience","category-genai","category-generative-enterprise","tag-cloud","tag-generative-ai","tag-mike-salvino","tag-phil-fersht","tag-raul-fernandez","tag-saurabh-gupta","organization-dxc"],"yoast_head":"\nNot even God can save DXC! - Horses for Sources | No Boundaries<\/title>\n<meta name=\"description\" content=\"DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Not even God can save DXC! - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/\" \/>\n<meta property=\"og:site_name\" content=\"Horses for Sources | No Boundaries\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-21T22:20:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-11T11:38:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1804\" \/>\n\t<meta property=\"og:image:height\" content=\"1006\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Phil Fersht, Saurabh Gupta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@pfersht\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Phil Fersht\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/\",\"url\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/\",\"name\":\"Not even God can save DXC! - Horses for Sources | No Boundaries\",\"isPartOf\":{\"@id\":\"https:\/\/www.horsesforsources.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png\",\"datePublished\":\"2023-12-21T22:20:23+00:00\",\"dateModified\":\"2024-09-11T11:38:31+00:00\",\"author\":{\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f\"},\"description\":\"DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#primaryimage\",\"url\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png\",\"contentUrl\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png\",\"width\":1804,\"height\":1006},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.horsesforsources.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Not even God can save DXC!\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.horsesforsources.com\/#website\",\"url\":\"https:\/\/www.horsesforsources.com\/\",\"name\":\"Horses for Sources | No Boundaries\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.horsesforsources.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f\",\"name\":\"Phil Fersht\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/image\/86ee0c0ac2d033eed87f327162eb27f7\",\"url\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png\",\"contentUrl\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png\",\"caption\":\"Phil Fersht\"},\"description\":\"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage\",\"sameAs\":[\"http:\/\/hfsresearch.com\/team\/phil-fersht\",\"https:\/\/www.linkedin.com\/in\/pfersht\/\",\"https:\/\/x.com\/pfersht\"],\"url\":\"https:\/\/www.horsesforsources.com\/author\/phil-fherst\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Not even God can save DXC! - Horses for Sources | No Boundaries","description":"DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/","og_locale":"en_US","og_type":"article","og_title":"Not even God can save DXC! - Horses for Sources | No Boundaries","og_description":"DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.","og_url":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/","og_site_name":"Horses for Sources | No Boundaries","article_published_time":"2023-12-21T22:20:23+00:00","article_modified_time":"2024-09-11T11:38:31+00:00","og_image":[{"width":1804,"height":1006,"url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png","type":"image\/png"}],"author":"Phil Fersht, Saurabh Gupta","twitter_card":"summary_large_image","twitter_creator":"@pfersht","twitter_misc":{"Written by":"Phil Fersht","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/","url":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/","name":"Not even God can save DXC! - Horses for Sources | No Boundaries","isPartOf":{"@id":"https:\/\/www.horsesforsources.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#primaryimage"},"image":{"@id":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#primaryimage"},"thumbnailUrl":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png","datePublished":"2023-12-21T22:20:23+00:00","dateModified":"2024-09-11T11:38:31+00:00","author":{"@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f"},"description":"DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.","breadcrumb":{"@id":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#primaryimage","url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png","contentUrl":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/12\/DXC-Market-Cap-.png","width":1804,"height":1006},{"@type":"BreadcrumbList","@id":"https:\/\/www.horsesforsources.com\/not-even-god-can-save-dxc_122123\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.horsesforsources.com\/"},{"@type":"ListItem","position":2,"name":"Not even God can save DXC!"}]},{"@type":"WebSite","@id":"https:\/\/www.horsesforsources.com\/#website","url":"https:\/\/www.horsesforsources.com\/","name":"Horses for Sources | No Boundaries","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.horsesforsources.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f","name":"Phil Fersht","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/image\/86ee0c0ac2d033eed87f327162eb27f7","url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png","contentUrl":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png","caption":"Phil Fersht"},"description":"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage","sameAs":["http:\/\/hfsresearch.com\/team\/phil-fersht","https:\/\/www.linkedin.com\/in\/pfersht\/","https:\/\/x.com\/pfersht"],"url":"https:\/\/www.horsesforsources.com\/author\/phil-fherst\/"}]}},"authors":[{"term_id":19,"user_id":3,"is_guest":0,"slug":"phil-fherst","display_name":"Phil Fersht","avatar_url":{"url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/02\/Phil-Fersht-HFS-Updated.jpg","url2x":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/02\/Phil-Fersht-HFS-Updated.jpg"},"job_title":"","first_name":"Phil","last_name":"Fersht","user_url":"http:\/\/hfsresearch.com\/team\/phil-fersht","description":"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage"},{"term_id":38,"user_id":12,"is_guest":0,"slug":"saurabh-gupta","display_name":"Saurabh Gupta","avatar_url":{"url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/11\/Saurabh_Gupta_12230_Web.jpg","url2x":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2023\/11\/Saurabh_Gupta_12230_Web.jpg"},"job_title":"","first_name":"Saurabh","last_name":"Gupta","user_url":"","description":""}],"_links":{"self":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts\/5676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/comments?post=5676"}],"version-history":[{"count":0,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts\/5676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/media\/5678"}],"wp:attachment":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/media?parent=5676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/categories?post=5676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/tags?post=5676"},{"taxonomy":"organization","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/organization?post=5676"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/ppma_author?post=5676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}