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back to article DXC share price tumbles on El Reg bombshell of Americas boss ejection

DXC has responded to our report yesterday about the CEO ousting his Americas leader by, er, not really responding – after our scoop caused its share price to crash almost 19 per cent. As The Register exclusively revealed, Karan Puri, exec veep and GM of the US and Canadian operations, was shown the door after about 10 months …

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  1. Erik4872

    Outdated business model?

    All these big outsourcers are relying on the classic approaches to making money:

    - Convince a CIO/CEO to fire their IT department and pay you to do it instead

    - Make the deal's profit margin by making it impossible for the company to do anything not specifically written in the contract without paying a change order

    - Make even more margin by sending all the actual work to India or similar cheap location

    - Do the absolute bare minimum to avoid losing the contract, not a shred of work more

    - Repeat, because said CIO has plenty of golf buddies you can sell your services to as well before the CIO gets fed up with your performance

    Problem is with cloud and SaaS, it's actually advantageous for a company to have a smaller IT department in house that's more focused on application support. That's not compatible with a massive outsourcing deal.

    17 0 Reply
    1. Anonymous Coward
      Reply Icon
      Anonymous Coward

      Re: Outdated business model?

      - Make even more margin by sending all the actual work to India or similar cheap location

      Sadly not. The deals are priced with as much work going offshore as possible as at 1/5th UK price it's what the customers actually want. Even when when they know it will take longer to do and quality will be lower, they figure they're maybe paying 2/5th or even 3/5th of onshore price in the end but that's still a lot cheaper.

      It is madness.

      Anon 'cos I still like my pennies each month. Even if it's unlikely to last much longer.

      6 0 Reply
      1. Anonymous Coward
        Reply Icon
        Anonymous Coward

        Re: Outdated business model?

        Yes, you'd be a fool to imagine that the customers haven't wanted anything but the absolute lowest cost.

        2 0 Reply
  2. Denarius
    FAIL

    standard recipe

    IMNSHO, outsourcerers seem to behave the same way. Expressed as pseudo-code.

    Apply socialised psychopaths aka sales weasels to CEOs and boards who have the common delusion of PHB class that anything of engineering or technical matter is simple.

    Apply $$ to political funding bodies

    Apply contract lawyers to agreement with suckers/customer

    Apply sword to customers staff

    Do Until broke OR Bought

    Apply sword to their own staff

    Apply $BS to stockmarket until clients lost

    Apply $MAX $$ to multiple PHBs

    Done

    6 0 Reply
  3. Long John Brass
    Trollface

    Halloween story

    Now gather round little ones...

    There exists a tribe called the PHBs whose grasp on facts reason and reality is very thin

    They believe that the most important thing for companies is efficiency and profit

    They calculate this by money payed by in customers / money spent on techies

    They reason that as they reduce the number of techies the more money they make from the customers

    So if you reduce the number of techies to zero you have *infinite profit*

    7 0 Reply
    1. Mark 85
      Reply Icon

      Re: Halloween story

      So if you reduce the number of techies to zero you have *infinite profit*

      Right... but sometimes not for long. Then the customers who no longer can support their own infrastructure go to another company and profit starts to drop. Rinse, repeat until the customer goes belly up due to not having any IT to fall back on.

      4 0 Reply
  4. Anonymous Coward
    Anonymous Coward

    Fluffy white stuff

    Can I just point out that clouds are actually cold and damp and prevent you seeing things clearly?

    1 0 Reply
    1. Stevie
      Reply Icon

      Re: Fluffy white stuff

      Well you *do* have to look at them from both sides, now.

      1 0 Reply
  5. fredesmite

    Just another cesspool

    customers who use this garbage basically get what they deserve; half-baked implementations and no idea how to keep it running

    0 0 Reply

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