Thursday, 8 May 2014

CSC Investors Call Tonight 8th May

CSC will be holding its investors call tonight. Connect to it here:-
CSC Investors Call

The agenda
The CSC executives line up in readiness

while the new HR team take up positions alongside
the Bell Curve implementation team who continue with the implementation program.


Outside the hall the sales and marketing team man their stand

and get ready to greet their latest super-consultant

Over at Blythewood the latest corporate art is greeted with rapturous applause.


The chairman takes the stand
as the analysts ply him with questions


The event concludes with a demonstration of latest technology from the labs.


Don't miss it
CSC Investors Call

20 comments:

Anonymous said...

Not sure I can add much to the amazing introduction to this segment - if a picture paints a thousand words, then the majority of the work is already done.

I didn't think that CSC had as many executives as in the picture above after all the bloodletting - but I guess it totally depends on the definition of executive. By my definition there are none left around and we might as well be led by . . . take your pick of a more appropriate subspecies.

The HR and Bell Curve teams are a hoot. Neither of these are, obviously, relevant. HR (Hourly Reductions) in particular has only two main functions - finding another way to squeeze more pennies from ever-shrinking employee benefits, and whacking out the required number of additional employees to prop up the numbers. The Bell Curve team? A good shot at that, but CSC doesn't need these false and pointless rankings to fire people - they're doing it just fine as we speak. I don't know of any of my colleagues that take ratings seriously - rather, everyone just realizes that some will have their turn in the barrel this year, and others are resigned to their fate of being railroaded out of the company. Even with the distorted and pointless bell curve CSC can't select enough people to fire to meet their internal goals.

As for the "analysts", I don't really expect their dogma to reflect reality. It's in "everyone's" best interest to find some way to put a positive spin on what's going on.After all, we wouldn't want the bottom to drop out on all those institutional investors again before they can unload. Only the astute individual analyst will look at true business value and not the bottom line. Let's keep an eye on sales of things that can be delivered (and differentiate things that are near term and not multi-vendor, multi-year contracts) and things that indicate real product and service delivery, not just number manipulation. Unfortunately the poor quality, inability to deliver existing and legacy products, and inability to compete in the "new" and transformed market spaces are ills that won't show up until it's too late to do anything about them. These are symptoms of the tumor that can only be seen from the inside.

Lastly, I love the "latest technology" picture. As has been reiterated multiple times in other areas of this blog, CSC is no longer a technology company, but rather is rapidly transforming into a technology middleman. Bread-and-butter products and services that were still viable and profitable - if properly managed (which many of them weren't and aren't) - are being sacrificed through loss of core competency (through the incessant firing of employees) and disgruntled customers, These are being replaced with an ill-conceived attempt to hang onto the coattails of companies like AT&T and Amazon and purport to "add value" to the people who really have the technology. These progressive and established technology companies need CSC like a goat needs a saddle. I wonder if we'll have real numbers on the revenue generated by these new lines of business.

Really looking forward to cashing in on my options . . . they're already in the money, and should be more within a couple of days.

Anonymous said...

CSC and the Pendulum - By Edgar Mike Lawrie.

Anonymous said...

How about "The Fail / Fail Start"?

Anonymous said...

1.5 billion dollar share buyback!!!!

Man, that Mikey boy wants his payoff for hitting the $65 share price barrier BAD.

Think of what they could have done with that instead.... *rude words deleted*

Anonymous said...

Comments the Dear Leader made during the earnings call call included that CSC would move from @ 20% offshore to 40-45% offshore. The implications are clear...

Anonymous said...

What he hid well was that a large chunk of the off shoring work had already failed, 3 Directors/VP's have paid the price and the work has had to be moved back on shore.

Anonymous said...

I'd like to know how he figures its 20% offshore today... its more like 40% of the staff in India already. Unless of course that's the trick, announce something that's already achieved but of course not reported... because CSC doesn't break down any numbers into regions...

Anonymous said...

offshore = disaster , been there, done it, roll forward fixes go missing, staff go missing , PM's that dont have a CLUE what they are doing, why do you think aviation companies have NOT sent their code offshore ! simple really.

Anonymous said...

That one and a half billion buy back costs 9090 fte . Remember that, paid for in the blood of innocents

Anonymous said...

From the transcript of the investor call, seems the serious money men also are
asking WTF.

****
Ashwin Shirvaikar - Citigroup Inc, Research Division

Right. But the question I have is, we had the announcement from HP the other
day, $1 billion in open-source cloud computing. IBM is investing seriously.
You look at Google, one of your partners, Amazon, literally billions of
dollars. But the question is the relative scale of what you're investing, is
that enough? Or are you better off making a larger investment and maybe a
smaller buyback? Any thoughts on that? And I know part of this is smart
investing and not just bulk investing, but I'd appreciate it.

John Michael Lawrie - Chief Executive Officer, President, Director and
Chairman of Executive Committee

Well, I'm a big believer that you go where the return is, and we've had a
tremendous return on buying back our own stock.
****

Must have been a typo there... "I've had a tremendous return"

Anonymous said...

The UK account I worked on until last month was already 73% off shored with a preferred move to 90%. Remember, the client is aware of this and is therefore happy to payless to offshore operations so you can't totally blame csc as they do offer the onshore option at extract cost for certain things. But as they say, pay less - more mess. The bottom line is this could reflect badly on the Client from a customer point of view leading to them to not renewing the contract in future and CSC then have less and less business.

Anonymous said...

PS I left CSC for an opportunity in the city that I couldn't refuse after waiting 3 years for redundancy. I was turned down each time as India weren't ready to pick up my work after 2 years training. I've heard from ex-colleagues that they've not had their ratings yet but all expect to be down graded from their direct managers scoring. They've also confirm 750 UK job cuts but it's not been confirm who is at risk but that it will be completed by around August. I probably would have got my two years payoff if I'd waited another few month but didn't want to take the risk of not having a job and meanwhile my skills being more out of date. In my new job I've already have 4 weeks of training in both Business Finance and technical IT skills which is twice as much as I got with CSC in all of my 9 1/2 years with them!

Anonymous said...

Really! Aviation s/w is also offshored. HCL has been doing it for Airbus for a long time now. A little 'Googling' goes a long way.

Anonymous said...

Ref CSC offshoring.. when it gets tough none India employees clean up the mess and fix it. Trouble is one day will be no one outside India left to resolve. What then?

Anonymous said...

CSC is loosing its business mostly to the Indian companies where mostly "Indians" are working ! These companies are performing way better in terms of business and client satisfaction as compared to the companies in west.
Crying and fixing blame on India is the easiest way for the people. Instead have a glance on your CV and then give yourself a fair feedback, learn the technologies emerged in last decade and I am sure you will land up with a good job! World is far competitive now, its no more a colonial era where fewer had the advantage, its the level playing field now! don't whine, work harder !!!!!!!!!!

Anonymous said...

figures as of February (so not completely uptodate)

United States 29,744 heads, 37.5%
India 21,936 27.7%
United Kingdom 6,472 8.2%
Germany 2,738 3.5%
Australia 2,542 3.2%
France 2,219 2.8%
Denmark 1,298 1.6%
Spain 1,169 1.5%
Vietnam 824 1.0%
Singapore 796 1.0%
Canada 756 0.9%
others omitted
Total 79,219

Anonymous said...

LOL. The work/jobs arent going to India/Bulgaria/Lithuania based on quality and skills and knowledge of emerging technologies, its down to cost. Enjoy your brief spell in the sun, your indian jobs will be moving to Vietnam/China/et-al next year when they're cheaper than you. Dont whine when it happens, and working harder wont make any difference, you need to work cheaper.

Anonymous said...

My dear friend, it is a dog-eat-dog world. Cost is definitely a big factor in offshoring but not the only one. As for whining, only those who don't change with times do that.

Anonymous said...

Cost is the only factor in an off shore model. Why else would you bother?

Anonymous said...

Even the earnings calls refer to them as "low cost delivery centres", not "higher quality delivery centres".

Maybe Mikey and the EVPs will show some leadership (the L in CLEAR afterall) and outsource themselves to India - there are surely experienced and qualified but cheaper candidates out there who could do their job for less. You owe it to the shareholders to do the right thing and make the tough decisions Mike ...