Monday, 13 April 2015

Exodus - Movement of the people


Over the years we have commented on the movement of senior managers in and out of CSC noting that many jump because of ‘personal reasons’ and that others leave for undisclosed reasons. In fact looking back over the posts on this subject there are no less than a dozen on this subject. These are listed below for those interested. There might seem to be a lot of posts on just one subject but we do not apologise for  this as hiring, developing, and retaining the right management team is probably the most crucial aspect of success for any company, and CSC seems to be institutionally very bad at it.

So what has been going on?

In looking back we see four main phases associated with management turnover.

Phase 1 – Exodus 1


started in about 2006 with virtually every European country’s finance leader bailing out along with most of the management teams of the specialized divisions like GIS and EBD, or indeed some country leads themselves.

Phase 2 began after it was obvious to everyone that CSC was failing and on the decline. Mike Lawrie was brought in and he quickly removed most of Laphen’s underperforming management team, while starting mass firings amongst the workforce. 


Also, during this time it looked like mercenaries were brought in with the promise of lavish bonuses if their division met targets – whatever they were – we assume the targets were basically to follow a scorched earth policy. Once paid out these mercenaries were obviously going to leave, which is itself no recipe for long term success of any company.
Yet it seems that even the mercenaries on significant reward promises were dissatisfied with the regime as many have left of their own volition.


This morphed into Phase 3. The Henchman/Crony Phase.



But that didn't last long; as it seems to have met with little success; with the new management cronies leaving along with yet more staff churn throughout the company including Senior HR people going. All resulting in poor morale and a subsequent loss of direction with confusion all round.

Now after a lack of sales (although one small deal has been announced this month), cuts and more cuts, and a continuing shrinking company it seems that;

Phase 4. It Is Exodus All Over Again.





Where does this leave the CSC stockholders, the employees, and any potential sale of the company? Still in the Sinai Desert or The Holy Land where Milk (mega-bonuses for the few) and Honey (big share buy outs for the few) flow.


As the poet once sang:-
Open your eyes and look within:
Are you satisfied (with the life you're living)?
We know where we're going,
We know where we're from.
We're leaving Babylon,
We're going to our Father land.

Exodus, all right! Movement of Jah people!
Exodus: movement of Jah people!

Credit to Bob Marley for the song.



The following links run from 2009 to the current day. In that time nothing much has changed, except the leader becoming richer than ever and the company getting smaller - albeit returning to profit - a much smaller one..

















92 comments:

Anonymous said...

Some interesting but unavoidably disconcerting developments within the CSC environment.
Apparently the company can add Maryland to its catalog of failures: http://cnsmaryland.org/2015/02/27/marylands-medicaid-claims-system-contract-suspended-according-to-audit/
Performance appraisal system continues to defy logic and appears to be structured to drive people from CSC and discourage outsiders from wanting to come in. Lessons learned? None.
Meanwhile, is it my imagination or has Lawrie, apart from cashing out his stock options, been curiously less visible in recent times? Perhaps the departure of Lesch is a harbinger of things to come.

Anonymous said...

And so it goes .... looks like the rank and file are not pleased with Lawrie's direction ....they're taking action.

Please read the entire article - take note of the last paragraph - I think this describes the esteem that senior management holds staff in.

http://www.bizjournals.com/email/web-view/MjA5MzI0NTgx?ana=e_article&m=washington

Anonymous said...

Its hardly surprising its been like this.

First the "new broom sweeps clean" and all the old top level management get destroyed.

Then the power concentrations are destroyed - regional management who were too independent of the centre.

Then all of the middle layers in the divisions are terrorised either by mass executions or making them compete with each other to stay with a job.

Finally, drag in some external people who then don't stand a chance of sorting out the epic mess that's been created and who are just as likely to face termination at the drop of a hat as a result of this week's direction change.

What's needed is someone at the top who isn't short-termist, who wants to build both capability and stability. To make a plan and stick with it.

That person is not Mikey.

You would have thought that by now an analyst or an investor would have cottoned onto the very obvious fact that each quarter the message is different, there is no consistency of message other than "we are changing things". Well stop bloody changing things, get a plan and get moving - you'd have thought for all those millions of dollars per year you could find someone actually capable of making a decisive plan and delivering it.

There's only one common denominator to all the management level fail, its the eye of the storm, the last man standing, the guy in the bunker who's determined to see the world burn around him.

Anonymous said...

400 to be layed off in the Nordics. - Just release to press.

Anonymous said...

So the folks new to CSC lasted 2 weeks..........

http://corporate.vattenfall.com/news-and-media/press-releases/2015/vattenfall-outsources-parts-of-it-operations/

Anonymous said...

maybe .... They say that 400 will be layed off in DK, and a 150 new positions will be open up. - My guess that will be the vattenfall people to replace the more expensive CSC crew. But 100 will be layed off in sweden and Norway.

If you can read danish it all here: http://www.computerworld.dk/art/233670/massefyring-csc-fyrer-hver-tredje-medarbejder-i-danmark

Anonymous said...

At least one analyst has cottoned on. Rod Bourgeois who has bern covering CSC for some years.

In December 2014 he said CSC stock was worth $33 to $40 only. See posting on this blog.

Mr Bourgeois is maybe getting grief or ridicule today for that assessment, but time will prove him right.

Goldman Sachs has just downgraded CSC saying it is not cutting costs fast enough. What a joke. That is a minor issue compared with the inability to grow revenue and retain good performers.

Anonymous said...

"It should also create room for the recruitment of 150 new employees, says CSC's CEO Jørgen Jakobsen in an email to DR." ... though he doesnt say which country those new jobs will be in

are the german/swedish/dutch vattenfall people cheaper than the CSC india/vietnam/bulgaria crew?

Anonymous said...

My harsh take: Mike is just being commercial -nothing wrong with that. There will be people with options (even possibly down to team leader role) who are sitting pretty. However there are also people who have worked most of their life there and have never been paid much. One side of me says , well they could have gone off and got another job, the other side says they deserve a decent pay off. I heard of one lady with 20+ years service just getting 5K. I suppose it is just a macroeconomic question on the distribution of wealth and the morale is always to be on the upside. Good Luck CSC'ers

Anonymous said...

Also the trouble is, if you have been at a company for some time, and your pay is linked to service, moving is very difficult . Pay linked to service just does not work in today's IT world - as people are discovering.

Anonymous said...

Why CSC would bother to bid and lose the money that has cost them after ipsoft disaster borders in delusional...

Accenture chosen to run NHS email service


Accenture was chosen ahead of rivals BT, CSC, General Dynamics and incumbent Vodafone, which are all suppliers to the £350m cross-government managed email framework run by the Crown Commercial Service.


http://www.computerweekly.com/news/4500244551/Accenture-chosen-to-run-NHS-email-service?asrc=EM_EDA_41907419&utm_medium=EM&utm_source=EDA&utm_campaign=20150417_Ofcom:%20Openreach%20future%20is%20on%20the%20table_

Anonymous said...

Didn't Accenture walkaway from NHS NPfIT when they saw how bad things were getting? Now they are back in!
I guess the government has little competition to choose a supplier from these days.

Anonymous said...

Ah yes, . . . CSC "leadership" - where to start? (Pause here for the reader to ponder the full weight of sarcasm)

I don't really have time to provide even a start on this topic (I must be about my daily illusion show, the business of looking busy for my CSC "manager"). What I will do is provide a link to an interesting article that describes what happens when your manager suffers from that common CSC affliction, the fear, doubt, uncertainty, jealousy, and vindictive nature that arises from their own mediocrity when they find themselves with an employee that, unlike themselves, is actually competent and risks outshining them. Yes, I've seen many cases where "managers" and "senior leaders" have derailed great employees to avoid having their own incompetence exposed. Read the article at this link and beware the signs!

https://www.linkedin.com/pulse/seven-signs-your-manager-wants-you-out-liz-ryan?trk=eml-b2_content_ecosystem_digest-recommended_articles-207-null&midToken=AQECfiMCodoPBA&fromEmail=fromEmail&ut=28UBAOlPbruSI1

Anonymous said...

Accenture are obviously forgiven for their previous cock ups.

Mind you, are there any large IT companies that haven't been implicated in some UK government project that went sour? You'd have to start to believe that there is actually one common denominator...

Anonymous said...

This is exactly what happened to me. Got quite depressed towards the end.But found another job, resigned and now on 40% more + bonus + Share options. Need i say more....................

Anonymous said...

Excellent @15:08. Underscores the importance of acting on opportunities when they present.

Anonymous said...

And CSC thought they would retain the New York State Medicaid contract in perpetuity: http://blog.timesunion.com/capitol/archives/232398/dinapoli-approves-565-million-medicaid-contract/

Anonymous said...

eMedNY has been a cash cow for CSC now going on 8 years ... CSC was 150M over budget when it went live but they were able to recoup those losses within about 2-3 years ... been in the black ever since. Too bad - lot of really great people will be impacted by this.

Anonymous said...

CSC complaing about times.. hmmm.. time to read this little gem again...

Manhattan U.S. Attorney Files Healthcare Fraud Lawsuit Against Computer Sciences Corp. And The City Of New York For Orchestrating A Multimillion-Dollar Medicaid Billing Fraud Scheme

http://www.justice.gov/usao/nys/pressreleases/October14/CSCandCityofNewYorkSuitPR.php

Anonymous said...

OUTRAGEOUS! CSC had the advantage of incumbency and wouldn't submit a bid for the NY Medicaid contract. How does this make any sense? What's clear is that Lawrie and his upper levels of sycophants committed one of the egregious acts of incompetency -- inaction. And they pay this man how much?
Meanwhile, CSC continues its madness under the guise of employee calibration, performance appraisal ranking and all the attendant BS to nickel and dime the employees. Lawrie and his associates should be terminated for not even trying to secure a nearly half-billion dollar contract. And to think that CSC could have leveraged their incumbency and many years of service to New York State. It's mind-boggling.

Anonymous said...

The SLA's dictated as part of the agreement are pretty steep as are the financial penalties. The RFP contained 13 pages of requirements along with the dollar amount assessed should the vendor fail to meet the standard. Early estimates as to the cost of such a robust system were well into 9 figure range approaching 1B.
The first requirement on the list was 24x7 production system availability - to miss that incurred a $1,000.00 per minute penalty.
Xerox won the contract with a 500M bid - I seriously doubt they will be successful.
My point is, it probably was as wise business decision to decline the business. It also predates the Lawrie regime.
Don't get me wrong, I am no fan of his - I left CSC after 11 years. The nonsense at the L-4 and above management was beyond outrageous - oh and by the way, John Michael Lawrie has cashed in about 5.7M in stock since January this year which I am sure you will all agree that he is entitled to (bit of sarcasm there) !

Anonymous said...

Service level agreements were rigorous but doable. HP, the other bidder, had no problem with the timeline but questioned Xerox's resources to satisfy the requirements. Xerox is not a new kid on the block. They hold Medicaid contracts with other states under 24/7 expectancies. It behooves them to use the NY contract as evidence that they can handle large Medicaid state populations (not so sure that's a compliment for New York).
The impression from pronouncements from CSC brass was that the company was interested in pursuing healthcare opportunities. This would be concurrent with Lawrie's time.
In candor, I think the only thing he's interested in now is counting his money. The damage has been done. Time for him to walk away-- even wealthier -- than when he started with CSC.
So that's where all the money went.

Anonymous said...

CSC has always had the ability to dazzle them in the proposal, but when it comes to actually delivering on the contract, it always fell short. I have had several friends in various agencies who have said "we awarded a contract to CSC...". I always responded with "Buyers, remorse?. They always answered with a resounding "YES!" I can understand not bidding on a contract with strict SLAs, as they most likely couldn't deliver well enough to make the contract profitable.

Anonymous said...

Your remarks and those of @18:09 are important factors why CSC wouldn't pursue a bid. Risk and profit are important considerations. Maryland is pretty close to being kaput. North Carolina got certification but not without struggle and expense. New York has a Federal suit in the wings.
Anyone see a pattern with this Medicaid business?

Anonymous said...

Looks like there is more unrest in the UK with CSC Ministry of Defence workers going on strike for 5 days after only being offered a 0.3% pay increase. What they don't know is that is a big pay rise compared with the zero I got for 4 years working for CSC UK! At the time I was leaving CSC we had just won the MOD contract for to service the Pay and pensions of service personnel. I for one was quite surprise the UK Government award this the CSC after the NHS fiasco.

These people were on civil servant terms and had a great pension and now they've been sold out to CSC. CSC normally ignores Union action on pay so will be interesting if they come back with a better offer. See the story in the Socialist worker - link below

http://www.socialistworker.co.uk/art/40386/CSC+workers+strike+for+five+days+over+pay

Anonymous said...

I wonder why they think they deserve a pay rise? They don't and I hope CSC does ignore the union. In fact, I'd sack them all if it was up to me.

Anonymous said...

It is interesting that there is very little coverage of the Sales Conference this year. No Lawrie keynote posted, no actual sessions recorded for everyone who does not attend.

Are all those people gone or is there a 'sales force only' mentality now?

Anonymous said...

Log on to c3.csc.com and there is a ton of GSC coverage, including video recaps

Anonymous said...

A bit harsh !

Anonymous said...

Ok lets look at the facts:

Union complaining before CSC even gets there, April 2012:

http://www.sourcingfocus.com/site/newsitem/5338/

Contract with MOD started 13/11/12

May 2013, moans and vote for strike action:

http://www.pcs.org.uk/en/news_and_events/news_centre/archived_news.cfm/id/4F9846FE-EA98-4C08-8D5AD03BF767EE49

No idea what the actual resolution from 2013 was, but it seems in 2014 they got 1.5% according to this article:

http://www.eveningtimes.co.uk/news/armed-forces-pension-staff-go-on-strike-204072n.123710491

I'd imagine that this time next year we will see exactly the same story because even if they win some sort of derisory increase, next time they will be refused it the same as the rest of us.

Anonymous said...

Umm, Is that you posting above Mikey? Why don't' they deserve a pay rise after all the money you've made from your shares, clients and the minions who'd never had a decent increase since the day they got chuck in the great CSC wheelie bin (UK Term) by their outsourcing company. Most companies should offer an annual pay increase based on the inflation for the year and your performance. Ex civil servants can be very militant. Looks like CSC didn't bargain for this.

I also hope CSC ignores the Union and end up on the news and a long wrangling dispute that will be as bad as the miners strike of the 80s. (ok that probably will never happen)

Anonymous said...

The strike is already all over the news including Compute Weekly and this militant site http://uniteresist.org/2015/04/support-pcs-csc-strikers/

Anonymous said...

Just turned up in my mailbox... oh dear CSC - you really are a SHAM!!!

http://www.computerweekly.com/news/4500244801/CSC-staff-on-armed-forces-contract-on-strike?asrc=EM_ERU_42105840&utm_medium=EM&utm_source=ERU&utm_campaign=20150423_ERU%20Transmission%20for%2004/23/2015%20(UserUniverse:%201487230)_myka-reports@techtarget.com&src=5382249

CSC staff on armed forces contract on strike

I think this story is very apt from CSC own website...

"A Strike for Security" http://www.csc.com/cscworld/publications/56901/56934-a_strike_for_security I expect not quite what they are hoping... but why would a USA company care about UK workers.......

Anonymous said...

It's not like they care about USA workers. Their contempt does not discriminate!

Anonymous said...

Lets try to be a little objective here. These UK guys went on strike when they were civil servants, they went on strike when they worked for HP, and now they work for CSC - guess what . . .
CSC has many issues, but this is not one of them.
In my experience CSC takes its commitment to Veterans and support to the Armed Services very seriously, its one of the few positives left.

Anonymous said...

"Umm, Is that you posting above Mikey?"

Ah, the stock "Mikey" rebuff.

Unions have no place in privatised industry in the UK. They are run buy political dinosaurs who do nothing but damage to the country.

Striking over a pay rise (leaving the fact that there is currently zero inflation in the UK) is beyond belief in this day and age.

Dont get me wrong. CSC do alot wrong and I am an ex employee with an axe to grind.

You've got to keep things in perspective. Seeing demons everywhere smacks of a pretty unbalanced take on things.

Anonymous said...

I agree with you on this, however, there is something in common with all of their employers though... none of them want to give out pay rises.

It is interesting to see a union actually prepared to stand up for its members - Unite@CSC certainly is not possessed of this much back bone, more's the pity.

Anonymous said...

In the last 12 months Mikey has offloaded 352k CSC shares, at a total value of just over $115m ....whilst his employees suffered 0% raises and no bonuses (excluding the management "elite", of course!) ....c'mon guys, no slacking ....forward TOGETHER!

Anonymous said...

I am no fan of Lawrie but ... 352,000 x 67 (low average price) = 23,584,000.00 - obscene, I agree.

Anonymous said...

You didn't get a raise because you didn't exceed your KRA's now did you.... in fact, only one person did and he got all the chips on the table.

If only that was just a CSC problem...

Anonymous said...

I blame the board of directors. He's doing exactly what they're criticizing him to do. Are they cashing out too?

Anonymous said...

oooops, cut & paste error, sorry! ...total value was in fact $17.1m ...degrees of obscenity...

No Director dispositions, so I assume they must believe that Mikey is on the right track?

Details are here... https://uk.finance.yahoo.com/q/it?s=CSC

On a separate note, can someone explain today's SEC filing? Details here... http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&dcn=0000023082-15-000011&nav=1&src=Yahoo

....no mention on the company website?

Anonymous said...

Appears Mikey needs more cash for something. http://www.ehow.com/about_6455464_definition-receivables-purchase-agreement.html

Anonymous said...

Factoring - that's when you sell your receivables for a discounted amount just to have the cash in hand.

From that Edgar's 8-K document:
"Under the Facility, the Company will sell eligible North American Public Sector segment receivables, including both receivables that have already been billed under an invoice and also certain unbilled receivables arising from contracts where the Company has performed work under a “cost plus fixed fee” or “time and materials” contract and other required conditions.
The Company expects to use the proceeds from receivables sales under the Facility for general corporate purposes."

The North American Public Sector receivables are State / Federal invoices .... pretty secure, I would guess ... 450M worth .... wonder what they need that kind of cash for ....

Anonymous said...

It allows for the sale of NPS Receivables, up to a max of $450m, over the next 12 months, and CSC expects to use the money raised for "general corporate purposes".

It's probably to fund the upcoming round of raises and bonuses?!!

Anonymous said...

a) Acquire another company at inflated price and get back the scale that was lost.
b) To finance large scale layoffs
c) Books are cooked and there is no free cash flow.

Anonymous said...

To mitigate ServiceMesh MESS. CSC freezes acquisition fund as it expects some ServiceMesh revenue may be binned
http://www.theregister.co.uk/2015/04/28/servicemesh_man_eric_pulier_resigns_from_csc/

Anonymous said...

CSC sells off government IOUs to free up cash.

http://www.bizjournals.com/washington/blog/fedbiz_daily/2015/04/csc-sells-off-government-ious-to-free-up-cash.html

“They’re accelerating the receipt of the receivable in order to expedite some payment for something else,” the analyst added. “They’re making the balance sheet more efficient by getting the money faster.”

"How common are these agreements? They’re more typical for what would be deemed distressed companies — those that are small or financially strapped and looking to improve cash flow. "

Anonymous said...

Factoring isn't something "distressed companies" do, factoring is something a lot of companies do because it means that you get your invoices paid now, not having to wait 30/60/90 days for your customer to cough up. This can make a big difference to the volume of business you can do where cashflow is your main inhibitor. Of course you pay a premium for this facility, but it doesn't appear on your books as a loan, so it might be favourable to your overall financial position.

However, from all of the statements I've seen from CSC, cashflow is not actually a restricting factor on growth - the main problem is not actually having anything to sell or anyone to buy it!

Two theories from me as to what they are doing with this pile of dollar bills:

1) There is some mega deal that needs funding to get it off the ground

2) Its FY15 end and in a couple of days he's going to announce another 1 billion dollar share buy back - committing the same terrible investment plan as before, buying shares at a high price to just notch it up a few dollars whilst squandering the chance for genuine business investment (as before)

Of course the third option is that they just add it to the liquid asset pile to encourage the PE vultures to swoop.

Locke said...

I suspect options 2 and 3 are likely. I don't know when these proceeds would hit the books and if it would be before the next reporting cycle, but it's always been about impressing the markets in the next report and kicking the problems into the long grass. Messrs Lawrie and Saleh have always held free cash as a vital metric as well. That said I'd be surprised if the analysts did not spot what's a fairly obvious ploy.

I was under the impression that factoring was used by smaller companies with cashflow problems, in the case of a company like CSC such a short-term cash boost seems unusual.

Anonymous said...

I thought for a salesforce meeting you had to have something to sell...

Anonymous said...

In the USA - YES. Rest of the WORLD NO!!!!!

Disaster in USA - begging bowl out - rest of the world - donate....

Disaster elsewhere - no comment or some local CSC workers helped... has double standards...

Anonymous said...

Any news on Payrises this year?

Anonymous said...

No news, good news?

Anonymous said...

+ 1

Anonymous said...

Most likely to repay debt due in Sep 2015.

CSC Total debt was approximately $2.7 billion as of Jan 2, 2015, primarily consisting of:

--$350 million of 2.50% term notes due September 2015;

--$389 million note payable (Libor + 17 bps) due Jan. 2016;

--$917 million of 6.50% term notes due March 2018;

--$445 million of 4.45% term notes due September 2022.

http://www.businesswire.com/news/home/20150306005788/en/Fitch-Affirms-Computer-Sciences-IDR-BBB-Outlook#.VUe2bhuJj4g

Anonymous said...

Have heard a rumor of large-scale (800+) lay-offs in the UK ...can anyone confirm?

Anonymous said...

that would be interesting - anyone know anything?

Anonymous said...

I didn't think there were that many UK employess left...

Anonymous said...

Considering that the UK has a fair number of unfilled vacancies in a number of different areas I would find that highly surprising. They are currently plugging gaps with contractors too.

Anonymous said...

I too have heard that there will be an announcement of more lay-offs than there have ever been - perhaps as soon as Monday 11th. I expect the company's response is that gaps will be plugged with cheaper labour. It's all about the pyramid mix.

Anonymous said...

Well, that would be probably 120 million dollars off of the 450 million dollars to pay off 800 UK people, given that they are likely to be long term employees (simply because CSC haven't actually hired anyone in the last 15 years)

Maybe we've just discovered what the loan is for...

I suggest whatever skull doggery Is coming, it will happen in the next couple of weeks as this is FY announcement time.

Anonymous said...

Confirmed as 786 roles to go, 13.4% of UK&I. Remember folks this is not about cutting costs, but about transformation. Yeah right.

Anonymous said...

VR is back 780 to go

Anonymous said...

Exodus - Movement of People - what a great title!

They have just announced 786 jobs to be removed in a new round of the get fit programme in the UK and Ireland.

Oh what a great company to work for. Hmmmmm I wonder if I'll get a pay rise again this year !!!!

Anonymous said...

Just got the email......Another 780 to go from the UK

Anonymous said...

and the sword of damocles makes it yearly appearance as usual (~800 chops announced, but it's ok you'll be replaced by cheap apprentices)

Anonymous said...

oh......................................... left for a much better job - 40% pay rise - , end of last year. Would have got 14K redundancy. such is life - if i had stayed a little while longer , i would have got, redundancy.or would I? A bird in the hand etc etc. What do you guys think? Already my gross income increase has made up the difference - should I have stayed?

Anonymous said...

Another communication announcing the disposal of another 786 UK and Ireland employees was sent yesterday 11/05/2015. Did not think we were that many left.

Anonymous said...

>> Unions have no place in privatised industry in the UK. They are run buy
>> political dinosaurs who do nothing but damage to the country.

.. and yet 99 of the FTSE-100 companies have recognised trade unions within their workforce. It doesnt seem to be holding the FTSE-100 back. Union laws and co-determination in Germany are far stronger than in the UK - it doesnt seem to be holding Germany back.

Like you said, seeing demons everywhere smacks of a pretty unbalanced take on things.

Anonymous said...

"What do you guys think?"
I think it's difficult to figure out what your point is?
You left CSC for a much better job on a higher salary?

Anonymous said...

FY15 Earnings announcement date announced.... Tuesday 19th...

I would say "hold onto your hats" but I think we've seen the shitty end of the stick already, just the sorry arsed BS words to come from Mikey.

Anonymous said...

I'm Another one who left CSC just over a year ago with out VR which could have been around £27,000! I did get a 43% pay rise by going and it happened to be a really opportunity in the City anyway. When I was deciding to leave without getting the push, a few job agencies told me its easier to get a job while your still in a job so I didn't went to end up out of work which by now I would be going in the latest cuts. Once your out of work for more than 3 months companies don't seem to want to know plus I'mthe wrong end of the age spectrum!

I thought the job cuts where over as when I left in April 2014 CSC management were saying Id have to stay as they were short of skill staff in the UK. Looks like the push off shore form the UK just got bigger Although it seems to us like CSC are cutting all the time in the UK, I assume they must be increasing numbers offshore?

Here is the news from the Register:

http://www.channelregister.co.uk/2015/05/12/csc_job_cuts_nearly_800_at_risk/

Anonymous said...

Where abouts in the UK is Germany?

Anonymous said...

This line from The Register says it all.Note the last four words.
Bloodletting is a seemingly annual custom for the scandal-hit ailing integrator.

Anonymous said...

Sorry, can't believe I typed 'your' instead of 'you're' twice in the above. Just had a text back from an ex-client who say CSC are sending an off shore Indian guy (who kinda replaced me) back to their office to keep hin happy as he likes spending time in the uk. Thing is they pay him onshore rates when he's in the UK so not a cost saving, plus his travel and expenses. I suspect he's returning to the UK to pick up more training to replace others in my old team, the 4 that are left in my team, that is! The client has also been told he will be sitting in their office which hints that the few CSC desks left in the Swindon Office maybe soon gone with no CSC client on-site presence!

I feel lucky to have left and not having these cuts hanging over me as they've done for the 9 years that I was at CSC. The luckier ones are those who left my account with a pop of money and immediately jumped over to the client account over the last few years, mostly the managers who looked after themselves and let us skilled workers struggle with big work loads, long hours and no pay rises for years! . Some have been less lucky and are either out of work or doing some non-IT related job.

Overall most people are best out of CSC and should see this as an opportunity to finally get rid!

Anonymous said...

I think this could be quite an important moment for any staff thinking about staying or going. (UK)

If you leave now chances are you can do it on your own terms and maybe take advantage of any enhanced redundancy terms you may have.

The doomsday scenario (slight humour intended) is in short order the company is purchased by a PE outfit or similar whose first act is to get rid of all the enhanced terms employees may have. I know its morally reprehensible but you have to ask yourself if that even comes into the argument with CSC.

I think its important to consider the worst case in order to put any decisions in perspective. Its hard to imagine a bright future where there is an effective turnaround and change in culture, just more unsuspecting graduates being recruited to help plug the holes and take the flak.

This is the point you may turn around in six months time and wish you'd run into your managers office screaming "show me the money" !! (May be worth it for the entertainment value either way)

Anonymous said...

My point is, is it worth leaving without redundancy or staying the course, until you get redundancy?
How do you weigh the pros and cons? I was a techie and applied many times for VR....But never got it. And yes 14K extra would have been nice :)

Anonymous said...

I left a while back and have kept in touch with a number of former colleagues and friends. I've counted them up - twelve in total and we all share one thing. None of us have any regret about getting out of CSC even without a redundancy payment. All of us are happier, me much so. I no longer dread Sunday night and going into a job where being successfully is very difficult. Not because of me or my colleagues but because CSC doesn't provide the tools to deliver impossible contracts. I now enjoy my job and get fairly treated and rewarded. Best thing I did I was getting out.

Anonymous said...

I agree that redundancy terms can be change by CSC if you are not already on the legal minimum. I left last year without VR as they wouldn't let me go and I had moved to nearer London so decided to jump for a well paid job with a future.

My account where paying a months pay per years service (continuous ) and 1.5 months for years worked over the age of 40 plus 3 months notice. However, those with a CSC contract who didn't transition got the bare minimum pay out It's now been 10 years since our transition and en ex-post office CSC collegue told me that after 10 years the pay out on their account was halved. The union got involved but I believe it went no where as legally CSC can reduce terms brought over from TUPE after just 2 years service.

So I would suggest anyone who's still thinking about going and feel they might miss out in the future then you should go. The future definitely looks uncertain for CSC and CSC'ers

Anonymous said...

I left CSC at the end of last year. I miss my old friends and colleagues but that is it. Have doubled my salary and work less hours. Now enjoying myself at work again. My advice is to get out if you possibly can. CSC management have no interest in you. The only person holding you back is yourself.

Anonymous said...

Ouch! - Eric was someone with such well aligned integrity, suitable for a CSC exec role...

http://www.theregister.co.uk/2015/05/12/csc_to_sue_servicemesh_man_eric_pulier_over_australian_bribe_scandal/?_ga=1.21600115.913462361.1422881898

Anonymous said...

Replacing experienced, and therefore more expensive, IT professionals with Graduates and Indians ...it's not cost-cutting, it's all about "right-skilling"!! I feel genuinely sorry for CSCs clients, the service being offered is in decline and that ain't going to improve any time soon......

Anonymous said...

Race to the bottom. Rally on!

Anonymous said...

Congrats, you did the right thing. Many more at CSC would benefit by doing that.

Anonymous said...

The news/rumors of breakup fly again....

http://seekingalpha.com/news/2524386-csc-reportedly-plans-breakup-shares-plus-2_9-percent?auth_param=t076l:1al9o5f:ac5ac49912add3268b78227436c34e22&uprof=82&dr=1#email_link

Anonymous said...

The ServiceMesh situation, like H-P's problems arising from its acquisition of Autonomy, make me wonder about the quality of the due diligence work the acquirers undertook.

Or maybe the CEOs of CSC and H-P were so intent on getting into the headlines with their high profile acquisitions that they did not bother about "details" like due diligence findings.

Anonymous said...

More info on breakup - 19th May I the date for release according to the article: http://uk.reuters.com/article/2015/05/14/uk-computersciences-m-a-idUKKBN0NZ20B20150514?type=companyNews

Anonymous said...

Another lie to artificially inflate the stock and divert attention away from the disappointing results ML will present

Anonymous said...

I am sure the owners of Cassandra will soon make a special post about it, hopefully providing more quality analysis than past posts: CSC splits into NPS and Commercial. May be step 2 in getting one of them ready for a take over by investors or the competition. FY15. GBS down. GIS down. Total revenue down by -6% to 12.1 M. OI down about 300 k as well.

Anonymous said...

No it wasn't a lie, as rumoured, CSC are splitting into two separate companies, details in the link below. Although it doesn't mention anything about a potentional take over or sell off at this stage

http://www.valuewalk.com/2015/05/computer-sciences-split/

Anonymous said...

This message was sent to you by the CSC Corporate eBroadcasting Manager as part of a larger distribution.




Earlier today we announced our plan to separate CSC into two publicly-held, pure-play companies: one to serve commercial and government clients globally and one to serve U.S. public sector clients. This is a significant milestone – creating two world-class businesses, each with the ability to help lead their clients in their respective digital transformations.

Today’s announcement comes at an important inflection point. In the “Get Fit” phase of our turnaround, we achieved significant results. We implemented a common operating model, streamlined our cost structure, strengthened our leadership team, and formed strategic partnerships to lead in next-gen IT. At the same time, the markets we serve have been evolving rapidly. Today, commercial clients are looking for agile providers with a deep understanding of their business that can help lead their digital transformations. In the U.S. public sector, clients want providers with deep experience in government-focused innovation, along with delivery excellence.

Our journey to growth will be enhanced by the ability of our global commercial and public sector and U.S. public sector businesses to operate independently as pure plays focused on their unique market opportunities. Separating the two businesses positions us well to accelerate the “Grow” and “Lead” phases of our transformation, and deliver greater value to our clients, employees and shareholders. While the two companies will operate independently, they will have a unique partnership, collaborating on intellectual property and next-gen solutions. View the video for more on the rationale for change.

How will this impact you? Based on your current role in the organization, you will join one of two strong and focused companies that are primed to succeed. Both companies will offer more focused career platforms with exciting opportunities to grow.
CSC – Global Commercial will be a growth-oriented company that succeeds through industry-specific intellectual property, go-to-market agility, innovation and delivery excellence; this $8.1 billion business will include 51,000 employees serving more than 1,000 commercial and government clients globally, including 175 of the Fortune 500.
CSC – U.S. Public Sector will be a top-three leader serving the U.S. public sector with its scale, reputation, government-ready innovation and delivery excellence; this $4.1 billion business will include 14,000 employees serving U.S. federal, state and defense agencies.




The separation is expected to occur by October of this year, subject to regulatory review and approvals. In the meantime, it is business as usual for all CSC employees. We will provide proactive and regular updates throughout the separation process. Access C3 for frequently asked questions, updates, and to post your questions.

Thank you for your dedication to our clients, and the passion and focus you bring to leading their transformations and delivering on their missions. Let’s work together to launch these businesses with the momentum that has successfully carried us through our turnaround.

- Mike