Saturday, 10 May 2014

CSC – Q4 FY2014 earnings – yet more of the same, but with a glimpse of the future

CSC announced its Q4 FY2014 earnings and held its Analyst Conference Call on 10 May. 

It was “yet more of the same” with continued earnings and margin growth beating Wall Street profit expectations, allied to continued revenue declines.  Once more, the market loved it and CSC stock gained 8% the next day. 


Highlights of the Q4 FY2014 results were:


·   Revenues totaled US$ 3.3 billion, down 5% from Q4 FY2013, and about US$30 million below the Analysts’ expectations. Operating margin of 10.8% compared to 5.9% in the same quarter of FY2013. Mike Lawrie attributed this improvement to the Cost Take-out program.


·   New Business Bookings totaled US$ 4.3 billion being 1.3x the quarter’s revenue. But one has to remember that this “1.3x” is against a constantly decreasing revenue denominator. The profile of the bookings also suggests there may be a strong element of  renewal of multi-year GIS contracts. 
    Note: the GIS contracts have the lowest profit margin so far.


It was also noted that S&P has upgraded CSC’s credit rating to BBB+.  This is a reflection of CSC’s progress in strengthening its balance sheet over the past couple of years. An improved credit rating does not guarantee future commercial success. 
CSC reversed a US$21 million liability for contingent consideration relating to the acquisition of ServiceMesh. This suggests that ServiceMesh may not have fully met financial performance expectations since the acquisition.
Full details of the results, the press release, the webcast of the Analyst conference and the accompanying slides can be found on csc.com .

The Analyst conference allowed Mike Lawrie to give some glimpses of the direction he is taking:
Increase offshore resources from 20% of work force to “mid 40%s” for the whole company. We calculate that to mean at least 15,000 staff will have to go from on-shore locations and 15,000 recruited at new locations. The top 40 or 50 accounts are targeted to reach  70% and above. What should this tell career minded “on-shore” employees  about prospects within CSC?

During FY2014, CSC’s net cash outflows for business investing activities totaled US$ 566 million (that's about 4.5% of turnover - is it sufficient?).  
US$640 million was also spent on stock repurchases and dividend payments in the year. 
In FY2015 CSC intends increasing its dividends and spending US$ 1.5  billion on stock buybacks,  which Mr Lawrie described as a “fantastic investment”.  This gives an interesting perspective of the company’s investment priorities.  Mr Lawrie and CFO Paul Saleh seemed unusually unsure of themselves when asked if the stock buyback was factored into the FY2015 guidance. Do they intend re-issuing most of these shares as stock options and deferred compensation for themselves? For an independent considered opinion on the value of share buy backs we suggest reading this 

·   CSC’s FY2015 plans for Cost Takeout will target greater G&A efficiency, Low-cost delivery centers, productivity gains from automation and Contract management. The total financial savings of these actions is targeted at almost US$500 million. Some US$400 million will be reinvested in Finance and HR systems, customer committed savings,  work-force and real estate restructuring and next-generation offerings.   Mr Lawrie was asked why CSC investments in open-source Cloud seemed so small compared with the likes of IBM and HP. Unusually, he waffled, talking about leveraging alliances. So no surprise about where CSC will invest next year – cost reduction, profit maximization  and restructuring once again.  

The HCL alliance is to target the apps modernisation segment.  Mike Lawrie said CSC had  not addressed apps modernization in the past. This may come as news to some employees.

It looks good on the surface.  Onwards and upwards with continued profit growth and shareholder value.  However, the continued failure to grow revenue and invest in new services and products give an indication of clouds on the horizon.   

Mr Lawrie appears to be so focused on profitability numbers he continues to overlook the human element.  CSC’s demoralized workforce (just read the comments on other posts) will not delight customers nor will the workforce be motivated to “go the extra mile”.  His FY2015 plans and priorities seem to continue to ignore the risks of this situation.

We do not share the market’s enthusiasm for CSC, nor have we changed our opinion from what we said 3 months ago, namely that we could almost believe it all, except for the nagging reality of the very different story we hear from CSC employees and the lack of ground breaking new business.



73 comments:

Anonymous said...

I predicted - Increased profitability (due to cost take outs), and flat to lower earning, and Wall Street would not like it leading to a drop in stock price to the low fifties. I was right on the first two predictions but investors seem to like what they see. Why aren't investors about the decreasing earnings and no clear path to increase them? Doesn't add up.

Anonymous said...

UK shortlisting complete... union "review" underway. . Not long now.. enjoy your summer holidays job searching... all these whilst lawrie and co literally making millions and millions... CSC .. what a great place to work!

Anonymous said...

Revenue is going down and so is the number of employees. Profits are going up, and as long as the EPS is good, the street will buy it This perhaps explains the enormous share buyback at unfavorable prices. However, there is only so much cost (employees) that can be taken out, and the decline in revenue/margins is not being offset by the new offerings and accounts. The logical trajectory therefore, for CSC, is a company with no revenue, no employees, a fair EPS and a small number of shares left on the market. Technically, an implosion.

Anonymous said...

To 11 May 2014 14.28

Institutional investors don't object because it is not in their interest to object. They cannot say the King has no Clothes without harming themselves. Analysts do not object because it would expose the fact they are just looking at spreadsheets not looking at the business fundamentals. Many individual investors pay too much attention to Analysts and do not do enough research themselves. They are all hoping for a sale at $65 or above so feel it is better to ignore reality.

Anonymous said...

I left CSC UK last month after being refused redundancy for the past 3 rounds due to my knowledge still being transferred offshore. This was nearly complete when I decided to leave for a better opportunity elsewhere as I told in March that the redundancy VR program was just winding up. I am kinda amazed that they announce anther 750 just when the tail end of last years round left mid March. My old team onshore was down to 4 on shore staff down from 12 staff 7 years ago. They are mostly those hanging on to their jobs as they want to either retire soon or didn't want to commute anywhere else. None were happy and most are doing very little work. Meanwhile our India team lead left with our main India knowledge guy last month. I'm so glad that I'm not there now especially as everyone expects a payrise this year and latest rumour is that there is no rise and most people will be marked down in the their appraisals! I guess there may be some that want VR but most of those have already gone in the last two years so that must now leave the people hanging on by their finger nails. My office was pretty miserable when I left so I can't imagine how bad it is now!

Anonymous said...

Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses and all the king's men

Oh Wait! No Men left in the Org to put it back together Hmm

Anonymous said...

Oh of course - not to mention that what employees see as a disaster area, Wall Street loves.

Cost takeout? Oh yes, more please.... no matter that it wrecks families, its all good :-/

The thing I don't get are the massive array of articles talking Mikey up as the next Steve Jobs though. The internet is littered with them.

Funny how when you know the detail of any subject that the "experts" suddenly look like idiots just recycling "facts" they find on the internet.

Anonymous said...

Any news on pay reviews?

Anonymous said...

It's not really news, but you aren't getting one, however Mike Lawrie is.

Its vital for CSC going forward only pays rises to people who actually do any work and Mikey looks around and see's that's only him.

Oh and the shareholders. They got a 1.5 billion dollar increment to their annual take home.

Anonymous said...

Didnt CSC pay Mike a package of 21,000,000 last year ? - how about instead of these 750 redunanices he puts his hand in his own pocket and pays everyone of those redunanices salary for a year ?

eg 21,000,000 / 750 = 28,000.

Just a thought !!!!

Anonymous said...

Well, that would be the equitable way, but you have to remember there's nothing equitable about American corporate capitalism!

You could also ask whether the 1.5 billion dollar share buy back and increased dividend would also go some way to covering the cost reduction that Mikey wants to achieve, but that would be forgetting that nothing is being done to actually shape real customer delivery - its all sales, hype and buzzwords to create an impression of a company that's a mover and a shaker.

In fact, an analyst from Citibank pretty much asked that very question...

Anonymous said...

With the vast majority of stock held by institutional investors, the comment about people not doing their own research is a bit irrelevant, but of course that leads directly to the fact that nobody's going to openly dispute Mikey's view of things - as noted, that only hurts the big players, and they protect each other.

If history is a good predictor, the short term spike in stock price will subside quickly. Go back and look at the short term spikes after these "fabulous" earnings reports. Doubtful that Mikey can get the price above $65 for a sustained period to make a sale. And buying back CSC stock at current market prices? Glad they have enough money to do that!

Anonymous said...

You simply have to have the right mindset and business model to understand what's going on. No offense intended to my Nordic colleagues, but just consider CSC management and Wall Street investors as modern day Vikings, with the objective to rape, rob, and pillage the company blind, sucking out all the liquid capital they can - via stock buybacks at ridiculous prices, increased dividends, and fat compensation packages for Mikey and cronies..

It paints a sad picture not only for CSC but for other once-great companies as well as this "management strategy" spreads.

Anonymous said...

who paid for Mike's $400'000 usage of a private jet ? isnt BA good enough ?

Anonymous said...

Private Jet's and business class are no longer allowed by the CSC travel policy. But may be Netjets is...?

Anonymous said...

Csc involved in rendition.. google it. Maybe they removed the chain seat for lawrie trips.. replaced with gold throne...

Anonymous said...

What do you know? I have had payrises when majority have not and mid management. Your comments are pathetic. Reward those hardworkers . Csc does.

Anonymous said...

Welcome to the blog Mikey, I wondered how long before you showed up.

Anonymous said...

Are Google reconsidering the image/quality of the neighbourhood based on recent arrivals lowering the tone?
http://www.engadget.com/2014/05/15/google-london-hq-delay-2017/

Anonymous said...

"It was also noted that S&P has upgraded CSC’s credit rating to BBB+."

The same S&P that rated all those sub-prime mortgage bonds as good investments................. wahey, glad I left CSC.

Anonymous said...

You know what? Upon reading all the above comments and those on other posts I am driven to conclude that CSC is full of frogs waiting to be boiled. See this earlier post
http://cassandra-guidedinsights.blogspot.co.uk/2014/01/froggie-tale.html
Come on you people take charge of your lives.

Anonymous said...

Biggest porky pie on investor call: customers have increased customer satisfaction when delivery is outsourced to India. Runner up porky pies are: (1) customers wanting our new offerings (where are they?) and (2) we aren't just cost cutting we are investing. Ha. Paltry reinvestment in the wrong areas. This company will implode with current actions against staff. Investors who know what is really going on are timing when they jump. Soon I would guess as Q1 results will again show little to no revenue growth.

Anonymous said...

We are.... waiting for the huge payouts to get rid off us.... cannot wait personally. Every pay check just adding cream to the top........

Thing is the board, directors, management, pay reviews, appraisals etc etc. I just do not care.

Will be mortgage free when paid out.

If not on list next month... will be another list next year.. and the year after......

I can wait, so can most of my colleagues.

All a game.

Anonymous said...

RenditionJet-as-a-Service, might as well make a few bucks on the spare capacity while he's not using it for his girlfriends shopping trips.
It might be one of Mikeys few tangible ideas for growth.

Anonymous said...

Csc india..PARASITES!! Believe me, working in CSC with them was not pleasant.

Anonymous said...

UK next week people at risk being informed,,,

Anonymous said...

HCL was a very difficult company to work with. That decision may bite them in the backside mate!

Anonymous said...

no its not, dont you get the union emails. there are still discussing who is at risk and the numbers, trying to mitigate the losses.

Anonymous said...

Union not done a good job last 5 years has it - you numpty!

Anonymous said...

The union cant prevent cuts, they can only mitigate the numbers.
They have no legal power to resist, only to negotiate and improve.
So its impossible for anyone to fairly judge how good a job they've done without knowledge of the numbers and the terms before the consultation, and afterwards. We only see the latter.

Anonymous said...

Here's another example of Wall Street talking up value in CSC, have a read of this and see if any of you can recognise anything real in this:

http://seekingalpha.com/article/2227863-computer-sciences-still-undervalued-with-management-restructuring-operations

Other than these two lines of course:

1) major restructuring, but the restructuring may not solve the underlying challenges that the firm faces

2) management is engineering a higher stock price.

The 17% undervalue is incredible - that would push the share price to ~$70. Can anyone say dotcom crash part 2?

Anonymous said...

Someone who seems to understand finance posted an interesting comment on that article. I've pasted it below for everyone here to see...
Observations from last conference call:
1. Cost takeout next year of $450 to $500 million.
2. Offshore workforce will increase from present low 20% to 40% to 45%.
3. Cloud, cyber, and app modernization cited as growth prospects.
Big Data seems to be fading.
Initiatives eye-popping percentage growth results still off a small base
Something Lawrie used to mention, but no longer does
4. Increased emphasis on cross-selling to clients.
5. Acknowledge most contract awards are smaller contracts.
Many, small contracts have duplicate staff and require a great deal
more attention (labor intensive) and effort than fewer, large contracts.
6. Recompetes attract few competitors probably because profit margins are
razor thin as product is commoditized. So high recompete rate isn't
necessarily a plus. Many contracts with razor thin profit margins
aggregate to a razor thin profit margin
7. CSC and NPS 2105 revenue growth prospects appear to be flat and
with looming cuts in DOD and U. S. government overall will remain flat
or decline. So 1/3 of CSC will essentially be off-line.
8. Expect realization of growth in second half of CSC's fiscal year, so six
month wait to see any real results which may disappoint.
9. Overall CSC's Book-to-Bill ratio is just slightly over 1.0 with DOD cuts
a recession in 2016 or 2017 that ratio is at risk of falling below 1.0 yet
again.
10. Each of the three business unit contribute about a third each to revenue.
CSC can not afford to jettison NPS and 1/3 of its revenue unless or
until commercial makes up a higher percentage.
11. Two years after CSC transformation has begun commercial sector growth
lags.
12. Cuts in defense have just started and are going to be more draconian
as time passes. The DOD pipeline is going to dry up.
13. CSC's debt to equity ratio is 0.76 which will be difficult to service in
tough times, especially if interest rates begin to rise.
14. Buybacks and dividend increases are to keep institutional investors
happy and quiet and Lawrie's side. If buybacks stall, Lawrie's
Wall Street constituency may walk or rebel.
15. Buyback being executed when stock price is HIGH. Should be executed
when stock price is LOW to make the most use of available funds by buying
back the most shares. See Warren Buffet.
16. Insiders continue to sell approximately half of stock awards
almost immediately upon award. Not a good harbinger of long-term
prospects.
17. Lawrie likes to telegraph by saying "key message" or "key point."


CSC is "undervalued" because two years after the transformation has begun it
is still a mess, bogged down with low growth, the initiatives have not grown
as expected, CSC management solution is to layoff more staff and more almost
half the workforce to India (CSC won't get DOD contracts with staff
offshore).


CSC has long wanted to spin off NPS just as IBM, SAIC, and Exelis have done
and Unisys also wanted to do. Problem is, as it was with Unisys, the
commercial sector refused to grow sufficiently to actually execute the
divestiture of the DOD and civilian government business.

Anonymous said...

Quite frankly I wish they'd get on with it as I'm really sick and tired of unethical practices, lack of support and too many bosses that then shirk there own responsibilties!

Anonymous said...

As our esteemed leadership seem to be struggling with keep the people on board perhaps they should consider spending 20 minutes viewing this TED clip.
http://www.ted.com/talks/simon_sinek_why_good_leaders_make_you_feel_safe?utm_source=newsletter_daily&utm_campaign=daily&utm_medium=email&utm_content=image__2014-05-19

Anonymous said...

Good analysis. The Bigdata business is probably in the hands of other more agile market players or still done on the BI side. CSC has the opportunity to sell of or spin off certain business units with a clear scope and good client structure...probably gets lost in the balance sheets.

Anonymous said...

How many employees are left at CSC? Are there actually contracts left for people to support? I know they just did a round of layoffs for folks in one of the smaller CA offices...

Anonymous said...

21st May - CSC has currently on http://www.csc.com/careersus/ds/91834-job_opportunities 1707 jobs advertised. YES ONE THOUSAND SEVEN HUNDRED AND SEVEN.

SO UK people - take that up with your union!!!!

A global technology company with home working, remote working, low skilled people in India Vietnam etc supporting clients GLOBALLY! Yet laying off 750+ in UK...

WHAT is going on!!!!!

Anonymous said...

My experience as a CSC UK Manager...

the union is met and lots of talks/meetings, 3-7 years they were harder in relation to negotiations. Reduce numbers, training, support and so on.

Last 2 years, very weak and going through the motions. Biggest argument we had was the collapse in share price. Could not argue with that.
Now share at $60 - that discussion is a tad harder.

Union was smashed in Nordics region, Unite know that.

Union is of no use and any discussions is for them to safe face. So we may go from 750 to 600. For CSC that is still great. Union again looks good value for monthly membership.

It is all a sham.

One thing I will add, if you are a union "steward" we would avoid making you redundant like the plague. When the hornet nest is playing ball, why stir it up.

Good luck all!

Anonymous said...

Nearly all of those are NPS jobs with various DOD/Gov/TLA clearance required.

I guess that's why CSC still has more US staff than Indians...

UK staff should probably take up the issue of protectionism with the UK government ;-)

There are 59 jobs advertised in the UK at this time...2137 globally. Target of 40% offshore, figures don't seem to stack up Mikey.

Anonymous said...

Am a CSC India guy, I think the western guys are parasites who come back with half information and then ask us to execute, these guys don't even have the balls to go tell the customer that the estimates they have provided are wrong or worse based on half knowledge, they would rather push the Indian guys to work on weekends or additional duration

That said I have worked with ppl who have gone all out for the offshore teams and was a real joy working with them, it was a symbiotic relation with these people

so I will sum it up and say that there are bad workers on both sides

Anonymous said...

Where is the Unite union in all this??

The last time we had them bafoons turn up was in the Keith Wilman era. At least the payouts were decent.

These days they merely serve to collect their 15 pounds a month only to make Unite itself more profitable. I keep getting emails about taking about mobile plans, pet insurance, Vote Labour, save the NHS, save RMG, but NEVER SAVE CSC!!! the sheer amount of cuts year after year we have had, and yet Unite taking our money and never sending any emails to us to keep us informed of cuts, never a threat of industrial action. They just turn up for lip service, eat the free grub and go back to their cushy jobs collecting protection money.

Why cant Cassandra write anything about the LACK of union support??

Anonymous said...

Our union is incompetent to say the least. If you can spot this, why cant they?? and they get paid to do this sort of thing.

Anonymous said...

well said.

Anonymous said...

In the UK little can be done from an individual or collective perspective about the way CSC operates. Individually we all have no power or influence and collectively the influence and power of any organisations or groupings (Union or Work Councils) previously held has been largely removed by legislation. They may appear less than effective and that may be the case but I think they have a thankless task. You have a choice to be a member of not. Bashing the union may give you satisfaction but it doesn’t and won’t help the plight of remaining CSC employees.

I don’t want to take this thread away from its purpose to inform about the goings on in CSC but I think these two examples illustrate the way power and reward for managers and employees in the company are way out of balance.

Changed conditions of employment – applicable to some employees transferred (TUPE’d) into CSC as part of contract awards in the UK. On occasion CSC has over time failed to fulfil and/or ignore some of these terms and conditions resulting in employees missing out on merit awards, cost of living pay increases and other benefits. They have been challenged and CSC have lost in court. Ref: Court of Appeal decision in CSC Computer Sciences Ltd v McAlinden & Others

Share repurchase. It is a known effect of share repurchases to increase the share price. As share repurchase doesn’t result in any value being added to a company’s capitalisation any effect on share options and awards should be discounted e.g. increasing the option price or reducing the number of shares awards so the effect of share repurchase programs is removed. It doesn’t happen as the board of CSC make and benefit from their own rules.

Anonymous said...

> It doesn’t happen as the *board* of CSC make and benefit from their own rules.

... which is the only explanation I can think of for the board approving Mikeys desperate plan to burn $1.5bn on a stock repurchase that effectively achieves nothing (http://www.ft.com/intl/cms/s/3/31912890-bd9b-11e3-a5ba-00144feabdc0.html "Buybacks are popular but do not produce real growth"). So the board are openly admitting they cant think of any acquisitions or investments in growth areas that will produce a better long term return on that cash (excuse my tongue in cheek assumption that they're in it for the long term!). The board are naked and short termers, not just the Emporer.

Anonymous said...

'You have a choice to be a member of not. Bashing the union may give you satisfaction but it doesn’t and won’t help the plight of remaining CSC employees.'

It doesnt help because the Union are not willing to do their jobs. Negative press, petitions, picket lines.... are you seriously trying to say CSC is more powerful than an the unions, take CSC to court time and again and you will see a change in behaviour. Lastly if the union isnt worth its weight in cutbacks, then they should come clean and say 'listen folks we cant do anything, CSC will eat us up (like it has been doing), we are trained in this work, but CSC are better in their jobs, dont waste your money paying protection money to us, we will just spend it on election campaigns and mobile sim deals for our members'.

Anonymous said...

My friends and colleagues, we are not the enemy of each other, regardless of geography.Management insistence on estimates that are too low to perform contracted work is the root problem cited by 11:03 above. The folks in the trenches that are responsible for the work develop good faith estimates to the best of their ability, then the management wonks go to the customer with reduced numbers for fear of not meeting their financial targets. Budget overruns and missed schedules are the result. Believe me, we would love to be able to have honest communication with the customers on theses issues, but woe to the person who would do such a thing. Most of the estimates are a farce from the beginning. The ironic thing is that CSC shoots itself in the foot by doing the same thing on their internal projects - misrepresenting the cost and effort involved in the things they are trying to do for themselves. Be interesting to see the numbers on all this money they are reinvesting in internal systems that Mikey talked about in the investor call. He's going to find out that he spent way more than he planned - his top people won't even tell him the truth and work diligently to suppress the real numbers lest they be the next ones to contribute their ridiculous salary and benefits to the "cost takeout".

Anonymous said...

Well said.

Anonymous said...

And another contract CSC should have won. I wonder why CSC didn't win at BAE Systems Maritime - Submarines?

Capita forms strategic partnership with BAE

http://www.investegate.co.uk/article.aspx?id=20140522090000P1A8B

Anonymous said...

CSC could not have won that contract. About 7-8 years ago BAE Maritime cancelled the contract and split from CSC, due to the awful service they were getting. It would be insult to injury if CSC went for it again.

If CSC offered to run the contract for free, BAE subs still wouldnt take them back.

Anonymous said...

Just got another email from Unite offering me payment protection insurance!!!

What about protecting our jobs??

Anonymous said...

Has anyone worked out what Lawrie is earning this year? Seems likely he has hit many of his self-set performance targets so can he expect another good payout?

Anonymous said...

Sick of Unite? Imagine life without a union in CSC.... no consultation other than statutory 45 days with the entirely untrained toothless and unaccountable UKEF, some of whom are senior managers themselves. No voluntary redundancy. No personal representation, support and advice. No union or company communications to staff about the programme. No C3 site. No FAQs. No contractor reduction programme. No challenges to the selection pools and processes. No challenges to external recruitment. No successful challenges to redundancy selection. Dismissal not redundancy for so called 'poor performers'. No redeployment. Compulsory unpaid leave? Pay cuts? It would be almost like living in the states. I'll go on paying the 'protection money' and take the work the union does put in warts and all thanks, and filter out the spam marketting using email rules.

Anonymous said...

This is probably no surprise to many people. CSC continues to lose long term beneficial partnerships through incompetency. The "win the contract at any cost" scenario is like cancer - things seem to be going splendidly . . . but when the symptoms appear it's too late to save the patient.

The astute student of CSC's downward spiral will also notice that over the long term there's a small inner cadre of senior people who allegedly manage these engagements, but in the end make a mess of things and are transferred somewhere to create another mess . . . while someone asked to leave an account leadership is put in position to continue making a bigger mess. It's all politics, backbiting, and self-serving garbage, with all us worker bees bearing the brunt.

It would tickle me to put some names on these things, but Cassandra has asked us to play nice. I guess over the long term we could use code names, like Moron1, Moron2, Dufus 33 . .

Anonymous said...

Does anyone know when Voluntary Redundancy will be on offer in the UK?

Anonymous said...

Got a newsletter from the Union rep yesterday, Union got smashed again, CSC not willing to offer any real term improvement on last year, Union + reps accepted it. No news on the 750 reductions, so looks like they got smashed there too. Union rep said something about people at risk being informed, i spoke to loads of different people in the UK and so far not heard of one dept being told they are at risk. Not saying its false, but the sheer lack of fight by the Unite union and reps is appalling, you may as well not turn up. Achieved nothing after giving the ol' share price is higher, we have grounds to negotiate. As a prev posted who represents CSC in these meetings said.... dont put the jobs of the reps at risk and you will be fine.

Anonymous said...

What have CSC got to fear from Unite? Membership is low and the local union leader needs permission from Unite HQ to make any kind of threats. They don't start wars they cannot win, so will do nothing and CSC knows it.

Anonymous said...

A union needs a legitimate grievance to call a strike. A reduction in staff numbers isnt really a legitimate grievance, unless CSC HR dont follow the letter of the law correctly. The union ARE doing their job, within what little powers they have left in the UK. Take CSC to court for what exactly?!

Anonymous said...

This is the most absurd comment on this thread, your confusing the services of a Union vs services Unite offers. Every union offers most if not all of the things you mention above.

Unite AND UKEF are good for turning up, making it look good, and to have something to write about on their CV's.

What has 14 years of 15 pounds bought me? i potential offer of a tidy settlement when Keith Wilman was around, a lower offer during the days of Goldstraw.... and a the hardest kick in the nuts in the days of Lawrie. They even have a decent share prices, poised to growth as they themselves claim and they Unite union AND UKEF cant even get eff all out of CSC for the staff they want to make redundant. In actual terms by their own admission, they got us less this year than last. Thats with the company actually doing better now than it was then.

What a load of bollucks!!

Anonymous said...

UKEF should be disbanded by popular opinion!! total waste of time, they cant even get the correct information out.

If one of the above posts is to be believed, their jobs will be safe always, why stir the hornets nest if they are playing ball as someone put it above.

Anonymous said...

unfair cutbacks for starters? they are making money, share price is booming. Benison said last year we are on growth after this wave of cuts... CSC continues to keep saying they are in the growth stage, Get Fit is behind us BLAH BLAH, so how the heck did we end up in Get Fit again?? in less than 12 months since the last cuts. We have not lost any contracts, granted we have not gained any either. But if a company repeatedly makes the claim we are in growth strategy now to its employees, we are in transformation now etc etc, is that lies then when they suddenly turn up at Get Fit stage again??

How about taking them to court for mental torture??

Anonymous said...

BACK YOUR COUNCIL WORKERS
You’d be lost without them!


Dear Unite member,

Unite council workers are asking you for your support ahead of the strike ballot, which opens next week (11 June), to win a better pay deal.

Our members are determined to make a stand over this year’s 1% pay freeze – that is four years of real pay cuts - and deserve all our support in this fight for fair pay.


To add to the contribution, this is an email i got....

Back your council workers!! Will they get an email saying back CSC workers?
Council workers still have jobs, CSC have lost jobs consecutively for the last 5 years.
Make a stand over the 1% pay rise, most CSC workers have had zero pay rises!!!

Anonymous said...

2700 + statutory terms, its open now.

Anonymous said...

15 pounds a month, avg 4000 Unite members = £60,000 a month
multiplied over 12 months, £720,000

Number of people facing issues at work where Union representation was needed, 1% 40 workers, cost for representation £500, with 5 meetings costing the union £100 pounds a meeting. Unlikely as they dont get paid £100 pounds an hour. This would cost £20,000

Total Profit for the year £700,000

Jobs saved this year, zero
Increase in severance pay, zero
Better terms, zero
Anything positive for employees?, zilch
Any press releases from the union? nada, nothing

Can i get a job in the union, heard its cushy there.

Anonymous said...

Gartner have published their latest report on cloud... seems the CSC spin isn't enough to place them 2nd behind Amazon anymore (but lets just LOL at last year's report once more anyway)

The report is here:

http://www.gartner.com/technology/reprints.do?id=1-1UKQQA6&ct=140528&st=sb

Worth skipping from thw quadrant diagram down to the CSC specific text section and looking at the "cautions". I'd say Gartner have a fair appraisal there...

Anonymous said...

This article nails CSC's situation. If you replace IBM with CSC it's spot-on. And where did Mike Lawrie come from? http://www.forbes.com/sites/stevedenning/2014/05/30/why-ibm-is-in-decline/

Anonymous said...

I've seen many parallels in Mikey's game plan before and long speculated he was just doing what he knew from IBM, but this article reveals even more of that to be true.

It also highlights the insanity of it all - basically squeezing the last drop of money out of a dying business before it goes pop, instead of actually trying to make the business a success abandoning that in the pursuit of maximum monetary return in the shortest time.

Its asset stripping without publicly saying you are asset stripping, inviting new investment into your wobbling pyramid scheme as you go along... nasty.

Anonymous said...

Spot On! Exactly what is happening at CSC and Lawrie's motivation is plain to see . On May 22 he cashed in another 33,262 shares for $2,032,308. Same every quarter - cash out to the max!!

Anonymous said...

Wow. The parallels with what's going on at CSC are really striking.The following comments were particularly noteworthy and unsettling: "IBM’s soaring earnings per share and its share price are built on a foundation of declining revenues, capability-crippling offshoring, fading technical competence, sagging staff morale, debt-financed share buybacks, ....and a broken business model and a flawed forward strategy"

Anonymous said...

http://www.finanznachrichten.de/nachrichten-2014-06/30489111-bizcloud-r-offers-it-intervention-to-csc-bizcloud-enterprise-cloud-computing-clients-empowering-current-and-future-csc-bizcloud-s-global-enterpr-256.htm

Anonymous said...

"CSC has poached our Intellectual Property and they even filed a claim to invalidate our trademark based on meritless accusations that we are not in the cloud computing business," said Vahid Razavi, Founder and CEO of BizCloud. "With the launch of IT Intervention program, we are confident that we can convince the cloud computing market that we are not only competitive, but that we can actually make a huge impact on the bottom line & IT performance of companies that are currently engaging with CSC and its partners offering products and services under our brand's name."

"We invite CSC BizCloud enterprise customers and partners from any geographic area, including the US, Australia, Europe and UK, and the public bodies such as NHS England, the US Federal Government and the GSA, to at least consider all options, including the genuine BizCloud offerings, before giving their next cloud computing project to CSC -- a corporation known for its unethical and questionable business practices outside and within the IT sector, including rendition flights of torture and its failed NHS contract," Mr. Razavi concluded.

Anonymous said...

With the difference that Offshore team took over the jobs but are not able to sell anything. Thanks to that CSC is just going down. short term profit. Accounts at best just renew existing deals when it's managed from India. I never heard any big deal signed off thanks to India AE-S

Anonymous said...

On shore staff down from 12 to 4 over 7 years? How about on shore staff down from 30 to 4 in 7 years, with offshore staff up from 10 to 50? And the 4 on onshore staff does about 60% of the real work. But no worries - the rest of us 4 will be gone shortly, I am sure.

Off shore managers are already working hard and behind the back to take it all over. And when they do and I am gone, I am going to laugh and laugh and laugh when the client finds out how incompetent the off shore resources really are.