DXC Technology CEO: Sales Team 'Blown Away' By Combined CSC-HPE ES Partnership Network


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DXC's combined billing system, financial system and Salesforce software have also worked perfectly since the first day of joint operations, Lawrie said. Plus the company is in the process of consolidating facilities in areas such as London, Lawrie said, where CSC and HPE ES will be moving out of separate facilities into a single, combined facility. 

"I am really pleased with the integration effort so far," Lawrie said. "Our partners couldn't believe that, within seven weeks, things were operating the way they are."

DXC is also thinning its organizational structure and beginning to make some of its proposed workforce cuts, Lawrie said. The company has a "labor war room" in place that tracks the "surplus" created when each layer of management is named and proceeding accordingly.

Company executives meet at 7 a.m. ET every Thursday to track every new employee hire and departure, Lawrie said, making sure to note the geography, skill sets and level of the pyramid for each affected worker.

Prior to the close of the merger, CSC took "long overdue" cost-cutting and restructuring actions in Germany, according to CFO Paul Saleh. DXC has thus far focused its cost optimization efforts around internal labor, travel policy and aligning benefit plans, Saleh said.

The company plans to take a closer look at its use of contractor labor, Saleh said, as well as its spending on hardware and software. Labor cost cuts for DXC will begin this quarter and accelerate in coming quarters in accordance with local laws, Saleh said.  

All told, DXC has said it expects to achieve $1 billion of cost savings by March 2018, with 70 percent of that coming from workforce cuts and supply chain efficiency.

"We are managing this thing very, very tightly so we know exactly what's going on," Lawrie said. "And then, we make adjustments as we go forward."

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