“over-capacity” in the sales force and within the “delivery organisations”
Ooh! Ooh! I know how this one ends! No redundancies in Sales and massive axe carnage in Delivery. Sales is what drives profits after all innit?
Been there, seen that.
CSC UK execs left sweating over local profit “challenges” have again opted to expunge costs from the business in a time-honoured fashion by strapping human capital to the employment cannons. Not content with running one redundancy programme this summer – the first started in May with the aim of losing 248 jobs – top brass have …
As someone on the inside, we do not have over-capacity in delivery!
If anything we have a shortage now, especially with experienced people. Some teams are now having to turn away, or delay starting work, because we often don't have the right people available at the right time, or having to push junior/less experienced people, into doing something that really should be being handled by someone more experienced, which then delays things, or results in rework etc!
As another person on the inside, we clearly do not have over capacity in sales, either.
We are pretty short of opportunities. We need more sales, then we need more delivery. All the management are doing is just asset-stripping the company. If we want to save money we should be trimming the bureaucrats. If we want to make it, we should be investing. We don't do either.
Typo in the article, the original, which I have access to, does have 'to'...
"Our UK&I business is facing continued challenges to meet the required level of Operating Income to drive the business forward. As such we have looked again at actions which can be taken to transform our business and reduce costs to improve our profitability. In doing so, we have identified the following areas which require further attention:"
Why do please *keep* referring to this purchase as a 'merger'?!?
CSC have bought HPES from HP. This isn't a merger, it's a reverse acquisition.
If anything more jobs are likely to disappear on the HPES side than the CSC side once this is completed next year.
A friend who works for HPES shares the despair at all the drones calling this a merger. Likely psychosomatic blights to avoid the thought of redundancy.
It's a merger just like the merger of Chrysler with Daimler-Benz. I can remember meeting several Chrysler execs who were convinced that they had taken over Mercedes and were going to teach Mercedes how to "do it right". Now Chrysler has 'merged' with Fiat and those who remain are equally convinced that they have taken over Fiat.
It isn't a "reverse acquisition" (that's when a private company takes over a public company), it is a so-called Reverse Morris Trust, for which there has to be a "buyer" but it is really just an accounting term in this case. In no real sense is CSC "buying" HPE ES.
I don't disagree that the bloodletting will likely continue in the fruitless attempt to cut their way to prosperity. A thought to management of both HPE and CSC...instead of cutting, produce products and services that your customers want, at a price they are content to pay and which offers a reasonable profit. Is it really that difficult?
And, attempting to remain polite, I will just write that I met no-one from that company with any discernible skill whatsoever.
I'm sorry to read about any redundancies, I really am, but judging from who I met, CSC should never have been allowed anywhere near IT.
CSC are planning to remove useful people, HPE have been removing useful people for several years, and continue to do so. Next March the two companies will crash together and implode in a mighty puff of what Douglas Adams might have called unsmoke.
Eventually, the gestalt entity will become a black hole...
It is a merger, their own press release says so.
The Enterprise Services side of HPE is massive employing around 100,000 people worldwide.
http://www.csc.com/investor_relations/press_releases/137152-csc_announces_merger_with_enterprise_services_segment_of_hewlett_packard_enterprise_to_create_global_it_services_leader