Thursday, 12 February 2015

CSC Results - February 2015

And it came to pass at the Press call for the Quarter Year Results that Michael did step forward. A host of money changers did follow him, and beseeched him to show whereof the results. Saying 'Yeh oh great turn-round-prophet how doth the company do?' Then Michael said unto his Finance Disciple ‘Where are we to find the readies to keep this crowd off our backs?’ He said this to test him, for he himself knew what he was going to do. The Disciple answered, ‘Six months' wages would not buy enough for each of them to satisfy a little.’ One of his other disciples, said to him, ‘There is a subsidiary here and there which if we were to squeeze hard and remove the lazy ones and also sell the tents in the market place, would yield much gelt.’ Michael said, ‘Make the money-changers sit down.’ Now there was a great deal of comfortable seating; so they sat down, about five thousand in all. Then Michael received the finance numbers, and when he had given thanks, he distributed them to those who were seated; as much as they wanted.
When they were satisfied, he told his disciples, ‘We got away with that for another quarter – let us split post haste before someone asks a smart question.’ And so the meeting did close.
When the markets saw what that he had done, they began to say, ‘This is indeed a miracle for from a shrinking company he has wrought much good results.' Yet even so, on the next day the stock price fell – unto like a donkey in a well - and there was a wailing and gnashing of teeth on Wall Street.

Here endeth the lesson - Be careful what you wish for.


Anonymous said...

Yes indeed, another command performance by Mikey. A lot of hand waving and bragging, but little said, internally or externally, about the decreased revenue. What's 250 million among friends?

Noteworthy was the blather about lack of traction in new products to generate revenue and the lack of skilled workforce to execute existing contracts. What new products, and who would want them? Cloud, big data, and security stuff all comprises an also-ran class of products brokered by those playing me-too in the market. And what kind of jackass fires thousands of experienced and dedicated employees, runs off thousands more by creating an intolerable and oppressive environment, and then has the nerve to say there's not enough people to do the work?

The chickens . .. . and the donkeys . . . are coming home to roost.

Anonymous said...

Do potential talented recruits realize that for every 10 new starters this year, 4 of them will be "under performing" in a years' time? Will it sound a warning bell (curve)?

Anonymous said...

If you are in any doubt that Lawie is a one trick donkey just take a look at the first key message in the conference call presentations for the last 7 quarters.** It is also interesting to note that the commentary explaining the Non-GAAP (General Accepted Accounting Principles) is getting more detailed. Greater application of the fudge factor giving the illusion of increased EPS?

Says it all really.


Q3 FY15

Non-GAAP EPS* of $1.18 driven by cost takeout and lower tax rate
*Non-GAAP EPS excludes net actuarial pension and OPEB gains/losses, pension settlement losses, and charges related to the proposed SEC settlement

Q2 FY15

EPS* of $1.18 driven by cost takeout and lower tax rate
*EPS from Continuing Operations

Q1 FY15
EPS* of $1.03 consistent with expectations
*EPS from Continuing Operations

Q4 FY14

Margin expansion, earnings, and cash flow growth driven by cost takeout

Q3 FY14

Cost takeout continues to drive margin expansion

Q2 FY14

Cost takeout driving higher margins and EPS

Q1 FY14

Cost takeout drove higher margins and EPS

Anonymous said...

Thought it quite interesting that they tried to put the $23M write down for Pension Plan Buyout, and the $190M write down for SEC Fine on equal footing. 23 <> 190 no matter what book you read from.

Cost takeout = firing people or offshoring. And they wonder why they can't get good people?

Some they got rid of, some left, and as for the offshoring - I guess you really do "get what you pay for".

Anonymous said...

Am hearing from folks still at NPS that solution architects and engineers who are charged direct to govt contracts are being trained and pressured into augmenting the sales force to get new work. Little time to perform client requirements. Has anyone heard whether csc has sold any cloud solutions that use Service Mesh? Wondering whether they've recouped any of that $300m+ investment......

Anonymous said...

Michael Lawrie is bankrupt. That's the real story. He's bereft of ideas (assuming that he had any good ones to begin with) and his only recourse is 'cost takeouts', which translates into vigorous and unsparing employee attrition. Attrition can be self imposed (preferable from CSC's point of view) or by placement into the failing benchmark by way of a gamed performance appraisal and forced into doing a PIP, which invariably results in failure and firing. Targets must be satisfied (performance distributions or ranking) and for this year it's under the guise of 'calibration'. Don't be misled. Dave Zolet's directive from last year is very much operative for this year's appraisals.

Anonymous said...

After a miserable performance like this, I assume all of the senior management will be getting a 4 on their appraisals, no bonus, no pay raise, a PIP and shown the door?

Oh hang on a second, that only happens to the ordinary guys and only when its not actually justified.

Clearly the message here is that you need to fail and fail hard to keep your jobs! Now get out there and fail like no tomorrow!

Anonymous said...

The annual 'take a weeks holiday before Easter' dictate hasn't materialized I wonder if the HR person has forgpotten it. left, been sacked...

Anonymous said...

Just in case readers missed the Washington Business Journal article on Q3 results, see below.

The CEO blames the drop in revenue on failure to recruit new employees and staff new contracts. Who would have ever imagined that the strategy of destroying employee benefits and morale would not attract new talent into the company, especially in a healthy IT job market in the U.S.?

Anonymous said...

They save us those "unhappy exec face" emails for Friday afternoons. Hold your breath ...

Anonymous said...

ermm am i missing a trick here?? staffing troubles? didnt lawrie just let a heap of them go? why is he recruiting when he is showing staff the door.

Anonymous said...

I'm guessing the hiring freeze and redundancy aren't helping the recruiting drive..

Anonymous said...

So he can pay the replacements peanuts with no benefits, therefore he can't get any replacements. The merry spiral downward continues. With a vast army of people who talk to each other on the phone all day, and a couple of guys to service the client, it can only end in tears.

Anonymous said... jobs in CSC India Search Results (219 jobs found) UK - 90 jobs USA - 1336 job! Whoop whoop - no pink slips this year!!!!!

China - 13 jobs
Vietnam - 62 jobs
Afghanistan - 1
DENMARK - big fat ZERO!!!
FRANCE - big fat ZERO!!!

Default search is INDIA - I thought this was an American company?
All jobs - 1780

All generally rotten!!!! Laying people off, forcing people out but willing to pay recruitment fees globally...

Anonymous said...

Also how many "managers could do this...
ob Description

Job Title: Sr Mgr:System
Requisition ID: 1400NAO
Job Category: Systems Services
Job Type: Regular
Primary Location: UNITED KINGDOM
Schedule: Full-time
Employee Status: Regular
Division: Cloud
Posting Date: Nov 17, 2014

Essential Job Functions
Develops and establishes department standards and procedures to ensure adherence to company systems policies and procedures.
Oversees the planning, design, installation, and on-going administration of complex or larger computer systems and local area networks to ensure efficient functioning of all systems. Identifies problems, recommends and implements solutions.
Oversees the evaluation of vendor products to ensure that appropriate and relevant products are obtained while maintaining cost effectiveness and company efficiency.
Determines needs of end users and allocates appropriate support to meet software and hardware needs.
Manages the installation and maintenance of existing and new software applications and hardware networks to ensure that company needs are met.
Develops long-term plans for mainframe networks and application development to ensure adherence to company long-term plans and procedures.
Oversees planning, design and upgrades of networks to ensure that applications support and maintain information systems in the company.
Serves as a contact for vendors of application products and services; reviews contracts for systems support, services and products to ensure that products and services are relevant and match company standards and specifications.
Acts as liaison with product development, telecommunications, database administration and web systems administration management to enhance communication among various functions to improve overall business efficiency.
Selects and hires employees. Trains and evaluates employees to enhance their performance, development, and work product. Addresses performance issues and makes recommendations for personnel actions. Motivates and rewards employees including providing salary increases, bonuses and promotions within allocated budgets and company guidelines.
Prepares, recommends and oversees development of operating and personnel budgets. Monitors spending for adherence to budget plans, develops and recommends variances. Performs and/or oversees budget analysis.

Basic Qualifications
Master's degree or equivalent combination of education and experience
Master's degree in business, computer science or related field preferred
Twelve or more years of application development administration experience
Nine or more years of supervisory or management experience included
Experience working with company objectives and strategies
Experience working with technology involved in systems applications, PC networks and usage of company internet system
Experience working with software, systems, applications, and network markets
Experience working with systems infrastructure including hardware configuration, operating systems and networks
Experience working with mainframe, scheduling software, and other related technologies
Experience working with the technology industry and company position in the industry

Other Qualifications
Strong organizational and decision making skills
Strong human relations skills to select, develop, mentor, discipline and reward employees
Good personal computer and business solutions software skills
Good leadership skills to coordinate, oversee and lead team members
Good communication skills to communicate with subordinates, vendors, customers and management
Ability to lead and work in a team environment
Ability to maintain formal and informal networks

Anonymous said...

well its official, we now have UK people managers to manage UK people.....again....
where the heck are they going to find these managers, as they made them all redundant when they made the org top heavy with US managers?

Also imagine how all the managers who got the boot are feeling, where they were booted in favour of a more US /India led global organisation??

CSC has gone full 360, nearly cancelling every significant decision they made along the way only to return to the regional models they started off with.

Where is Budzinski's beat when you need it? he has been very quiet lately, all the EVP's who prepared the roadmap for us peasants basically reaped the benefits from their bonuses, and shafted us along the way. Now every plan they made failed they are going back to how it was. No matter how in trouble CSC was in those days, at least they could win new business and bring in some money.

Anonymous said...

Motivates and rewards employees including providing salary increases, bonuses and promotions within allocated budgets and company guidelines.

In job spec - not had a manager at CSC who has done this in last 3+ years so why have this in the job spec?

What a farce!

Anonymous said...

It was actually stated that they would not mandate another "forced holiday" this year as it didn't produce the expected benefits. Possibly because at the time they mandated it (around Xmas) most people were off anyway !

Anonymous said...

From the five videos listed on the site, do you remember which one mentions not having forced holidays this year?

Anonymous said...

Interesting to see how Wall Street really don't actually look at companies at all.

Those stinking figures caused the share price to fall from $64 to $60 - seems a little low, but I suppose at least a reaction.

However, by the end of the week, the price is up to just under a record high for CSC.

I suspect some market commentator will say that with the SEC investigation behind CSC and the pensions fund problems sorted then everything is clearly on the up and a brighter future is around the corner.

If you took only 5 seconds to do the analysis then you might come to that conclusion, but the rest of the market briefing talks of no new products to sell, no customers to buy them, no staff to deliver them and "no clue" from the CEO.

Still Wall Street, I'm sure that's a mighty fine investment you've just made...

Anonymous said...

Nothing learnt from the eighties....... anybody with any investment in a 401K, stocks or, heaven forbid, CSC should read Liar's Poker.

Anonymous said...

I'm confused. We're going re-affirm our commitment to the "2-in-a-box" management model? Ummm, if each employee is going to have 2 managers, doesnt that suggest there are still twice as many managers than are necessary?

Anonymous said...

You have to be clueless to buy CSC shares today at a price which is just pennies off its highest for 10 years. Forget the analysts' spread sheets of earnings growth and all that. CSC is achieving it by cutting muscle, losing some of its best talents and by financial engineering. Look at the revenue shrinkage and CSC's competitive market position in key technology areas to get the real picture. You people holding or buying CSC stock today will be crying soon.

Anonymous said...

And the price has broken new ground today... highest its been in this century, despite the market falling today.

I'd love some of the drugs Wall Street are smoking.

Anonymous said...

Why no one is coming forward to buy this company ? Main street is wiser than wall street. Or now that company is doing *great*, Mike and team does not want to sell the company anymore. Higher the valuation, less probability of finding a buyer given the questionable fundamentals we all are aware of.

Anonymous said...

What will be the price if the buyback for the last several quarters is factored out?

Anonymous said...

As sad as it may seem to all of us in the trenches, Mikey is accomplishing what the board put him there to do - the key is to understand what that is. His one and only goal was to drive up the stock price. Not to build a good company. Not to have happy employees. Not to foster technical and product innovation and excellence.


As noted, Wall Street loves it - simply because the only thing they do is put numbers into a spreadsheet, crank the handle, and see if what comes out meets some standard formulas. If you don't believe this, just spend some time looking at analyst ratings and recommendations for CSC and you won't find anything about products, employees, or anything that affects our lives and futures. It's all about the money.

And you have to wonder who is buying all that stock after the price dipped by $5 per share and then bounced back to a new 52 week high in just a couple of days. Further share buybacks by CSC to prop up the price at an inflated level? A bit of insider trading on the knowledge that a sale is now imminent after the stock is hitting a predetermined target? Doesn't seem to make sense that a savvy investor would want a piece of it knowing that future sales and revenue are absolutely on the decline, but again, Wall Street is experienced in fabricating fairy tales.

Anonymous said...

The shameless ultra-capitlistic venal and greedy way this company is being run without a care for its people or customers is enough to make you want to vote Communist. Certainly neither the Democrats nor the Republicans have an answer to this.

Anonymous said...

@13:41- Excellent perspective on the events at CSC since Lawrie's appointment. I think too that he has indeed accomplished what 'mahogany hall' asked of him and he executed the mandate. What happens going forward? It's likely that Lawrie will leave once he's ratcheted down all monies due him. The challenge then will be laid on the shoulders of the next CEO to initiate damage control, stem the hemorrhaging of skilled workers, secure revenue and rebuild the company. No easy task. A lot could happen at any point and parts of the company or contracts might be sold off.

Anonymous said...

If you are a CSC employee with IT skills (i.e., not a manager), leave as soon as possible. There is more money to be made and better benefits to be enjoyed elsewhere. Also, Lawrie's "Forward Together" Soviet era slogans are ridiculous, and all of his statements reek of BS.

Anonymous said...

I do like these Cassandra pages, a bit like a window on the past for ex-CSC'ers like myself. Not sure ML deserves so much blame, he's hard-wired to make turn-arounds work, with one goal, profitability. Cuddles and pastoral care are not on that menu!
Many v.good folk have voluntarily left, those that command a higher price in the market and aren't there for the love of things - That's what I did and can attest to there being interesting/better paid/stimulating work out there.
Many mediocre folk remain, hanging on to dodge the bell-curve calibration, or setting out a plan to get paid off. Then there's the middle of the distribution curve, which in itself is getting squeezed... honest folk working hard, but easy to pick off the backrunners and pin a pink slip on them (watch big cats circling game, that's performance management - nothing new!) I once competed with CSC some 15 years ago - and CSC was awesome in play. Now I find myself doing the same again - and what a difference? CSC no longer a threat with "5 big conversations" that really are so last-century and delivery costs being pared to the bone making once prized clients open game for the aggressive and progressive pure-play outsourcers. Coupled with un-flattering public press, CSC could see itself being taken out, if it doesn't hurry up and pare off the bad bits then sell the rest.
I met ML a few times and would be fair to say he's also human - but a shrewd reckoner. Certainly keeps the blood off his hands - that's left to the L2's and L3's (Why keep a dog and bark for yourself?). When the L2/3/4's get exasperated then, as the Eskimos once did, throw their carcasses to the rest of the pack to make them stronger.

Anonymous said...

These latest comments all seem to be saying that the CSC Store has lots of window dressing but not much for sale inside. If so then the business will fail even if a mug buyer is found for the premises
Or, as my old mum used to say about "She's all fur coat and no drawers."

Anonymous said...

from Perverted Proverbs by Col D Streamer

A Pig In A Poke

Unscrupulous pigmongers will
Attempt to wheedle and to coax
The ignorant young housewife till
She purchases her pigs in pokes;
Beast that got a Lurid Past,
Or else are far Too Good to Last.

So, should you not desire to be
The victim of a cruel hoax,
Then promise me, ah! promise me,
You will not purchase pigs in pokes!
(‘Twould be en error just as big
To poke your purchase in a pig.)

Too well I know the bitter cost,
To turn this subject off with jokes;
How many a fortune has been lost
By men who purchased pigs in pokes.
(Ah! think on such when you should talk
With mouths that are replete with pork!)

And, after dinner, round the fire,
Astride of Grandpa’s rugged knee,
Implore your bored but patient sire
To tell you what a Poke may be.
The fact he might disclose to you–
Which is far more than I can do.

* * * * * *
The Moral of The Pigs and Pokes
Is not to make your choice too quick.
In purchasing a Book of Jokes,
Pray poke around and take your pick.
Who knows how rich a mental meal
the covers of this book conceal?

Anonymous said...

Indeed, @21:17, the next phase of the fiasco is likely to sell off either the entire company or break it up to see if the parts are worth more than the sum. Selling was on the agenda in the last days of Honeycut as CEO, and that failed because nobody could see the value of the company without the stock price being higher (starting to make some connections now?). Nobody is really sure how Laphen had a chance at the helm, and that was a disorganized and fragmented attempt at letting the heir apparent have a go at it. Now we have Mikey at the help to just slash and burn at the direction of the Wall Street master and the board of directors to gut it out for maximum money. What else could it be? We see declining revenue, talent leaving as fast as possible, and a failed new product / direction strategy (as evidenced by all of Mikey's "Shining Stars" such and Sam Visner, Siki Gunther, et. al. leaving after short tenures and no impact). No new business pipeline, falling revenues, and all the blood squeezed from the turnip for cost reduction.

Please, oh Great and Wonderful Mikey, show us what's next!

Anonymous said...

In another demonstration of confidence in CSC's future, CSC President and CEO, Mike Lawrie had unloaded a further 3,049 shares at $64.56 per share in a transaction on February 13, 2015.

Anonymous said...

Just to "give that some color" (in the words of Mikey), between the 12th and 13th of February, he cashed in just shy of 1.5 MILLION DOLLARS of shares.... still of 10% of his ill gotten gains mind you.

Anonymous said...

Shares spike to over $70 over the weekend after this tweet from @dealreporter:

"$CSC Computer Sciences is in discussions to sell in a two part deal to strategic and PE, people familiar tell @Dealreporter #Exclusive"

I always expected something to be closed off by April..... my bet is a deal with one of the Indian IT company's, probably HCL for the non-Federal business and NPS to somewhere else.

Worth picking out as a new story Cassandra...

Anonymous said...

Here is a link to the Possible sell off

I Left CSC UK in April last year after failing to get redundancy. I was either going to get pushed out the door by the end of 2014 or kept as a technical resource due to shortage of skilled staff in CSC. I has a meeting with my line manager who hinted I may get sent to Milton Keynes, about 80 miles from my then current location . Back in March 2014 he was already saying that managers would be going during 2014 but not technical staff. My team all felt they had a safe job once again but the managers have virtually all left during 2014.

On the day I was gold they wouldn't be letting me go, I literally send out my resume/CV that same day and got an interview offer within a couple of hours.I now work for a small but growing Finance IT software house that had no plans to outsource and is expanding. Been here 10 months now and things are looking really good with things like a pay rise and travel when required.

However, at times I felt that I may have thrown away a big UK pay out which could have been useful. I can now see that I would still be there as a techie on the same account but with an impeding unknown future once again. Does anyone have a view on what will happen to those UK guys on the private contract side. Are they going to be working for and Indian company which could possible push to move the final techie roles off shore?

Anonymous said...

"within allocated budgets and company guidelines" -- there's the qualifier.

Anonymous said...

You have to understand, and before i begin, i am not pro CSC.
Its actually in your benefit to have what is offshorable orshored. Frankly CSC has contracts from secure onshire accounts and those bit and pieces need to stay in country. Its there that you want to be. Still wont make you 100% safe, but its better than working for an account which is offshorable.

Any business leader would offshore where he can, all the major IT firms do that. The smaller firms dont do it because you need complex contract negotiations with 3rd parties, and its sometimes too much of a hassle.

The problem with Mikey is that he has no logic to the cuts he is doing, sack staff and then realises he hasnt got anybody left to do the role. Sacks staff and then is saying we cant recruit anymore.... all that stinks of short term miscalculation from Mikey. He thought he was king and that his strategy would work, but its backfired and now there is no plan B.

Anonymous said...

But, if everything gets sold off to an Indian IT company - won't WE be the "offshores" then?

Anonymous said...

Some years ago, I was with a (then) very well-known US owned IT equipment manufacturer with a large presence in the Thames Valley. It was downsizing rapidly, and many people had the same "dilemma" as you have highlighted.

It was a company which an excellent technical heritage and reputation. Those people who left of their own volition by and large got good jobs elsewhere . Those who stayed for the big final payout found themselves in a crowded labour market with many other ex-employees of the same company. Companies which were hiring in the area felt that those people who had hung on for the payout had done so because they lacked either the skills, the commitment or the drive to go elsewhere. So many of those who stayed collected a payout but damaged or killed their careers by doing so.

You appear to have got yourself a much better job. Be happy about it, look forwards and don't waste your time looking in the rear-view mirror.

Anonymous said...

Mikey would certainly like to sell off at handsome profit for Wall Street, but there's probably a rub - sophisticated Indian IT companies (HCL, et. al.) are probably too savvy to pay such an inflated price for the pieces of CSC that they can get. Their only leverage in the market is cheap labor, and if it doesn't involve supplying cheap labor then they are no more competitive than anyone else. The way Mikey has technology wrapped up at the mercy of outside organisations (such as AT&T, etc.) means those deals are locked in and tied to alleged new products and revenue.

Just remember, they tried this play in the past, and failed miserably. All there is so far is just rumor and wishful thinking.

On the bright side, thank goodness Mikey can unload another batch of stock at an even higher price now.

Anonymous said...

nearly all of UK leaders are british indians, im not being racist, but its certainly more appealing to indian buyers. i find it hard to believe there is no other staff better qualified in the labour market, the strangest thing is the guys who are joining CSC are not leaving rocky shores, they all seem to be from well settled jobs, and more-so they seem to be very well qualified to do their jobs.

which leads me to my next point, nobody would leave a steady ship to join CSC unless the payout was HUGE! If your Gossain, Anand or the new guy, why leave a steady job to join CSC when nearly all of the press about CSC is negative?? and if CSC was bought out, they would be the first ones to get culled. Managers get the boot first when a buyout happens. So they must know their heads are on the chopping block.

Anonymous said...

There are Indian faces appearing all over csc in key management positions. Not csc India employees, new Indian people living in the UK, USA, Australia and all over. The plan is obvious, these people are there to give some degree of stability to our new Indian overlords, whereas others would walk the second the deal went public...

Anonymous said...

Anonymous said...

A thought about CSC being takeover by a foreign company.
Much of CSC's work is in the US Federal and Defence sectors. Also CSC has or did have contractors, 'security people' on assignment for the government in Asia. Also CSC does work for what might be called USA Strategic Companies. That being the case is it likely that the authorities would approve a foreign owner.
Also to consider is that much of the back office and shared infrastructure within CSC USA almost certainly relies on government contracts to keep them whole once you strip way government work and the commercial contracts may have to pay more for the infrastructure and shared services/overheads.
Whoever may/might buy CSC had better do in depth due diligence.
Pensioners - current and future had also better make sure their Union Reps and Pension Fund Reps or Trustees are keeping a close eye on the pension funds making sure they are performing well and are fully capitalised to meet long term commitments. Those pensioners that have transitioned into CSC through takeovers or outsourcing and could find themselves under 'new management' may not see the same commitment to them as they would have seen from their original employers.

Anonymous said...

Nps, dib and non US government /defence clients go to the PE buyer, the rest of the true commercial clients go to the foreigners. Quite simple really, probably the commercial bit is one third of the revenue and two thirds of the employees... All of csc India for a start. Ironically its probably the latter who would take the brunt of the job losses if this was to happen with an existing Indian company as the buyer.

Anonymous said...

Surprisingly this company is always using the same speculative trick about a take over. Worst unethical company I have known.... It is a constant lie

Anonymous said...

I'm not sure that's actually true. Sure they are liars in the main, but the idea that someone would buy any company is always a possibility (look around, M&A always has been going on) and certainly the idea of someone paying mega bucks to purchase what you own is only "maximising shareholder value".

Traders (and the share price) play off of rumours and hard facts are always impossible to obtain because any and all negotiations or approaches are cloaked in secrecy.... and so you see these events occurring from time to time... for once its not actually "CSC disease".

Anonymous said...

JP Morgan see some truth in the rumour - or at least see how the numbers might add up:

I'm not sure that the break down CSC publishes of its revenue are actually too easy to understand. There's a lot of employees across those bits (NPS, GIS and GBS) that mean that the costs are not easily apportioned correctly to each sector, despite the revenue being silo'ed.

I'm sure the numbers aren't quite so clear to anyone with an insider view as to how CSC actually works to provide the manpower to crew those contracts...

Anonymous said...

There are mixed comments on the net, some say yes there is talk but there have been rumours CSC will be taken over since 1990... its never materialised. On the whole they could sell, but they have Defence/secure work which would no doubt terminate if CSC was to switch hands.

Can you imagine if a chinese company were to buy CSC... like hell the US govmnt will approve that...

If it was indians then its the same again. India has big ambitions, do you think the US fed govmnt wants an indian company to have visibility of whats going on with the work they are doing?

UK has secure account work with many iTAR companies.... they would never agree to it.

What would happen to the infrastructure supporting these clients, who gets what, what happens to the sites or the so called POD where multiple accounts are serviced from... its not a straight forward thing to say the least.

I think personally 1 company would have to take this on, these guys couldnt organise a piss up in a brewery, can you imagine them facilitating a breakup of CSC. Yeah right!!

Anonymous said...

Its NOT actually a buy out, but it may well mean more trouble down the road as the firm who now has a 6% stake in CSC is known to have agitated execs to doing what they want....

Anonymous said...

Anonymous said...

If employee morale was ever low, then these guys are going to shake us up even more!!!

There is loads of articles online about Jana and their brutal business mindset... with them and Lawrie they have found the perfect partnership, to rape and pillage CSC for every dollar they can get. What does this mean for staff, more cuts i guess....

Anonymous said...

So somehow Indian "faces" are not qualified?

Anonymous said...

Not to sound ugly or racist or xenophobic, but... out of the 500+ Indian "faces" I have worked with/for over the past 12 years - only about 10% (on the high side) are "qualified" to do the job they are doing. That runs from top line managers to first line managers to techs to business analysts.

So, in my opinion, most of them are not qualified.

Anonymous said...

To Anonymous 15.19

Where I work we have a saying " Everything before the "but" is bullshit".

Your remark demonstrates that quite well.

Anonymous said...

To Anonymous 16:55

You didn't say 15:19 was wrong.

Anonymous said...

To be fair, useless people I encounter in CSC come in all different shades.

I think the point being made here about "new Indian management faces" is true, its too much of a coincidence but I will say some of these people they have hired in doing this are actually pretty good - irrespective of ethnic background. Some in particular are better than the cretins we've had before - so its not all bad!

Anonymous said...

Previously, last year, we had a failed approach by CSC to PE.

We've talked here about the new story of PE and an existing company buying CSC and we've talked about it maybe being HCL (which does seem likely).

However, when you are as desperate as Mikey is to make a buck, you have to go stand on street corners and shout at any passing car to ask them if they want a piece of you...

Cap Gemini:


Basically Mikey is in a mini skirt, high heels and a mesh top trying to sell his tatty old sorry wares to anyone...

And I think back to the days when we all were proud of our company :-(

Anonymous said...

Anyone or any company thinking of investing in CSC could do worse than pay heed to what one of the best fund managers around has to say about share holder value. The full text is in the Financial Times who get credit for it.

......... if the pursuit of improving shareholder value in the form of high ROCE can lead to problems, they are nothing compared to those which can arise when growth in earnings per share is the target. A fixation on earnings per share (EPS) is one factor behind the mania which has developed for share buybacks. In an era of zero interest rates, every buyback which reduces cash or increases debt can be claimed to be “accretive to EPS”. Sadly, it doesn’t actually make the shrunken share base any more valuable.

Last year, IBM abandoned its 2015 EPS target of $20 per share, having made only $10.76 in the first three quarters of 2014. The computer services business had delivered its “IBM 2015 Roadmap” in May 2010, purporting to show how IBM would increase its 2010 EPS of $11.52 per share to $20 by 2015.
Quite why any other investor should be impressed with this goal, even if IBM could achieve it, is beyond me. As I never tire of reminding people, EPS takes no account of the capital required to generate it, or the return on that capital.

The IBM “road map” described a number of “bridges” to growth in EPS. Roughly 40 per cent was to come from revenue growth, although this included acquisitions; 30 per cent “operating leverage” (cost cutting, in English); and 30 per cent from share “buybacks”.

Acquisitions, cost cutting and share buybacks are not a particularly high-quality source of growth. The cost cutting and share buybacks are certainly finite — you can’t shrink your business to growth.

The outcome for IBM has been inevitable, and not good. Investors and executives need to realise that the creation of shareholder value is an outcome — not an objective.

Anonymous said...

Budzinski gone. Sackings will continue as long as the stock price artificially inflates ...

Anonymous said...

As a former US-NPS employee, I empathize with the comments and situations illustrated here in these threads but ... remember, you are all free men and women - you are intelligent and hard working (I am sure you have all put in your share and then some of nights, weekends and holidays).

About 2 years ago, my manager was terminated (laid-off stateside or made redundant on the other side of the pond). This was my wake up call. He was one of the best managers I had worked for. Smart, knew the security business, always available and yes, he was able to give me a good bump in salary once. He went out on medical leave to have some foot surgery. A week later, on the day he came back, he was "given the boot".

Here was a guy who had years of knowledge, experience and worked within the US government. Those qualifications became a financial liability for CSC so ....

Now I became concerned about my future. Here was a capable guy I looked up to and CSC disposed of him ... just like that? After a few weeks of sleepless nights, it hit me ... get a "Plan B" going. I gave the same message to my staff.

Leave CSC on your terms, not theirs. Quit bellyaching on this blog and build your resume - I did and I am in a new company that actually cares about its employees.

If I can do it, anyone can!

Be well and good luck!

Anonymous said...

Dear 22:02 Anonymous, Well done to you. Your advice is very sound.
But you are not alone, hundreds of people have already left CSC under their volition in order to stay sane and keep a sense of self worth. That's why CSC is suffering in sales and delivery.
Others may lack the courage or feel trapped for whatever reason. Many of them will also leave when the time is right for them.

Anonymous said...

I agree. I found out through the grapevine my job was going to be outsourced. I left before that happened. I didn't have a job lined up and was unemployed for a good while but I was optimistic. Now I'm with a company that sees it's employee's as an asset, not a liability. The company had a good year in 2014 and every employee got a bonus (7,000 employees).