back to article Driving Xtreme Cuts: DXC Technology waves bye bye to 45% of Americas Security divison

DXC Technology is sending hundreds of security personnel from the America's division down the redundancy chute and offshoring some of those roles to low-cost centres, insiders are telling us. As revealed by The Register at the back end of March, the outsourcing badass cum cloud-wannabe confirmed the security practice within …

  1. Anonymous Coward
    Anonymous Coward

    "The security landscape is changing, and our global clients need different types of services as they progress through their digital transformation. At the same time, security skills are becoming both more specialized and more scarce. We therefore need to look worldwide to fulfill these changing requirements."

    The guy's not very good at logic or press BS, isn't he? If those skills are scarce they would not be putting people on the street who were already screened and operating in this sphere and who could thus be trained to add those new skills. No, this is shifting more work to lower wage countries, yet keep charging customers the same.

    1. ShredderFeeder

      Wait...

      If they're laying people off because of redundancies... That means they already HAD people who had the skills (and the experience)...

      This is *JUST* about getting rid of the senior people so they can put all the work on a bunch of underpaid, underexperienced stooges.

  2. Pascal Monett Silver badge

    "there will be fewer certifications to maintain [..], which is costly and time consuming"

    Yes, but it is also a way to guarantee quality, which does not seem to be part of DXC's goal any more.

    Also, letting an engineer go to hit financial targets ? Of all the dumb reasons to fire someone, that one has to take the cake. It indicates without a shadow of doubt what really matters at DXC.

    Another rotten place to work at.

    1. kat_bg

      Re: "there will be fewer certifications to maintain [..], which is costly and time consuming"

      I agree... If the financial results depends on letting one engineer go, I think the company has some screw-ups running it...

      1. ShredderFeeder

        Re: "there will be fewer certifications to maintain [..], which is costly and time consuming"

        The problem is they're letting the engineers go who actually know how to do the work.

    2. ShredderFeeder

      Re: "there will be fewer certifications to maintain [..], which is costly and time consuming"

      Yes, excellence does cost more...

      If you think excellence is expensive, just wait until they get full-blown ignorance.

  3. Anonymous Coward
    Anonymous Coward

    will the orange one tweet

    Make Ameriica g*8 again. Rejoinder: At what ? PHB BS ? Already there

  4. HmmmYes Silver badge

    In 20 years of experiencing offshoring, Ive yet to come across a 'cheap offshore' location. At least, not for long.

    Closest Ive ever seen this promise being met was some stuff going to Estonia. They were good but they were not cheap for long. And theyve all gone now

    Cheap workforces do not exist. Any company that thinks there is is kidding themselves. yes I know this is a load of ratweasel MBA types pissing around with Excel.

    1. Anonymous Coward
      Anonymous Coward

      Offshore companies such as MPhasis (DXC's usual go-to in situations like this) are never cheaper past the first billing cycle. And they're never better.

      Butts in seats is all they care about. I've interviewed some guys who couldn't find their ass with both hands and a flashlight only to have them hired because they're cheap and fill out the headcount.

      If DXC's customers were smart, they'd just go directly to the outsourcer. They'll get the same service but without the 30% margin DXC is likely adding to the ticket in their desperate desire to remain relevant.

    2. ShredderFeeder

      Exactly, it never lasts. They bid it low then ramp it up through SOW change requests until the service is costing more than it did before, and with fewer actual experts working on it.

  5. TrumpSlurp the Troll Silver badge
    Joke

    Reminds me of the apocryphal joke....

    About the Irishman (other ethnic butts of jokes are available) who had just finished training his donkey to work without eating when the ungrateful beast died on him.

    I have no doubt that cutting staffing levels each year can make the current year's financial numbers look good and maintain the C suite bonus levels but each cut ditches some current customers and reduces the range of future prospects.

    Await a write down in the accounts of "customer good will".

    I could, perhaps, understand them "rebalancing" the staffing to support the current product range and customers but to reduce the staffing and product range to cut short term costs seems to be yet more of the "death by 1,000 cuts".

    1. Anonymous Coward
      Anonymous Coward

      Re: Reminds me of the apocryphal joke....

      Why would C-Suite types care about next years numbers?

  6. revenant Silver badge

    Security - who needs it eh?

    Not DXC Technology it seems. I wonder how their customers and prospective customers feel about it?

    1. Kabukiwookie Silver badge

      Re: Security - who needs it eh?

      Not DXC's customers either it seems. Time to check which companies outsourced their IT with DXC and get rid of their stock before shit hits the fan.

  7. Starace Silver badge
    FAIL

    Another reason not to use DXC

    Why pay a premium for another cheap offshore bodyshop? That's if you're even able to use something like that for security.

    1. jeffty

      Re: Another reason not to use DXC

      That's all you ever used to get with HPE before it was DXC.

      People saw that big blue HP logo (or the daft green letterbox) and assumed they were getting a premium service or solution. In reality it was best-brand price, best-shore resources.

      DXC don't even have the history or recognisable brand to pull that kind of con off.

    2. HmmmYes Silver badge

      Re: Another reason not to use DXC

      Id train my replacement .... for big bucks.

      However the obvious flaw just does not seem apparent to HR n management - Ill do I shit job because they cannot sack me for it.

      1. Sir Runcible Spoon Silver badge

        Re: Another reason not to use DXC

        I've been asked to train a replacement in the past - I tend to take the 'PhD' approach. i.e. explaining everything in excruciating detail, no summarisation. If they recorded it they could use it to train themselves to a pretty high standard, but not recording it would make it next to impossible to absorb all the information if you didn't know most of it already.

        They couldn't complain I wasn't providing them the knowledge, they just didn't provide quality students.

        Also, training is an actual skill-set. Knowing your job and training someone else to do it are totally different (albeit related) skills.

    3. ShredderFeeder

      Re: Another reason not to use DXC

      Seems like anyone who wants to get the job done should just go directly to MPhasis, or whatever third party they're shunting work through.

      The idea that DXC would shift security functions to a country KNOWN for security breaches is laughable.

      What they're doing is offloading liability. When something goes wrong, they can (and will) just blame the subcontractor.

      1. Robert D Bank

        Re: Another reason not to use DXC

        I agree that this offshoring of blame is a big factor. The c-suite types love that.

  8. Anonymous Coward
    Anonymous Coward

    Cybersecurity is one of the hottest growth markets and is full of bullshit merchants selling snake oil and making easy cash. If DXC can’t make money even in this market, they are beyond help.

    1. ShredderFeeder

      DXC Couldn't make money with a printing press.

  9. AMBxx Silver badge
    Mushroom

    Training your replacement?

    I've been made redundant twice. Once it was handled very nicely, the other it was handled under the threat of being sacked if I didn't play nicely.

    I've never been made to suffer the ignomy of training my own replacement though. Bastards.

    1. Anonymous Coward
      Anonymous Coward

      Re: Training your replacement?

      "Knowledge transfer" before you go....

      1. neilo

        Re: Training your replacement?

        "Knowledge transfer" before you go....

        Bwahahahahahahahahaha... "knowledge transfer"... I gave two weeks notice. They tried to squeeze the knowledge transfer into about three hours on the final day to a guy who quit three weeks later.

        D☠️C doesn't care enough about customers to ensure a proper knowledge transfer. All D☠️C cares about is having people seeming to have the knowledge so that customers don't immediately leave.

    2. R3sistance

      Re: Training your replacement?

      I've only been made redundant once but it was to my mega advantage since I was already looking for another job. I knew I could earn more than I was on, by a significant margin and so after my 3rd interview in a particular week I got a phone call from the Team Leader announcing the redundancies were coming.

      Well I eventually did find another job and had the luxury to be paid a considerable sum to leave at the same time! I did however have the indignity to have to travel to train up some of the replacements, who I felt sorry for since I knew they were being tossed in the deep end of a swimming pool packed to brim with liquid manure since the company management and directors had no idea how operations worked in that company.

  10. Anonymous Coward
    Anonymous Coward

    Errr

    "and our global clients need different types of services as they progress through their digital transformation."

    Pretty sure they don't want a *shit* service (which is what they will undoubtedly end up with).

    Where the fscking hell do we find these C-suite people, and if anyone knows can they please nuke it.

  11. Anonymous Coward
    Anonymous Coward

    But they still want security, right?

    "and our global clients need different types of services as they progress through their digital transformation."

  12. Anonymous Coward
    Anonymous Coward

    Driving Xtreme Cuts

    Priceless......Beer and upvote for you.

  13. Anonymous Coward
    Anonymous Coward

    "The security landscape is changing, and our global clients need different types of services as they progress through their digital transformation. At the same time, security skills are becoming both more specialized and more scarce. We therefore need to look worldwide to fulfill these changing requirements."

    Hmm...and these "more specialised and more scarce" security skills are available in Low Cost Countries, are they?

    1. neilo

      ...these "more specialised and more scarce" security skills are available in Low Cost Countries, are they?

      Why yes; yes they are.

      There is a seeming inexhaustible supply of security engineers, support staff with deep rapport with clients, highly skilled developers and more in low-cost countries. Oh wait - that rapidly becomes high cost. Oops; my bad.

  14. TonyPony

    I like the line :

    "Given five-and-a-half weeks' advance notice to help the accounts they manage migrate the design, implementation and support work to a DXC team in India "

    When i was there (and on the pre sales side so hopefully a little more expeditious), five and half weeks would be about enough time to eventually find the team, (after finding the manager and getting a decision made that their team would be supporting this new workload in addition to their already stretched team..)..

    Oh were now out of time ... never mind... Bionix and Platform DXC will save us.... Oh...

    Customers should start looking at their commercial agreements very carefully!

  15. JMiles

    How long until...

    DXC are totally left without any real customers, business offering or meaningful revenue?

    I honestly think they should just shut-up shop now and hand back what cash they have to shareholders. They seem to have very little (if any?) strategy for making money or exploiting new markets - I'll add them to the list of Zombie Corporations. IBM's been similar for decades. Cost cutting is what bloated companies need to do; otherwise its just a sign that management have given up any prospect of growth.

    Microsoft could have gone that way but Nadella seems to have done a fantastic job of actually adapting his company to the changing world.

    1. Anonymous Coward
      Anonymous Coward

      Re: How long until...

      "How long until DXC are totally left without any real customers, business offering or meaningful revenue?"

      The DXC story is destined not to end well but it remains a large, profitable company; it's not going to disappear overnight. It will probably be another couple of 'difficult' years before we see the DXC denouement.

      1. Anonymous Coward
        Anonymous Coward

        Re: How long until...

        Governments and other naive buyers locked into decade-long contracts. They have to choice but to accept whatever dross DXC sends them.

    2. neilo

      Re: How long until...

      DXC are totally left without any real customers, business offering or meaningful revenue?

      It could be a few years, actually.

      Talking with a soon-to-be-ex-DXC buddy, in my old section hiring is frantic to replace the people leaving - but experience isn't entering the building. It's people wanting to get started in their careers that are being hired.

      Remaining customers are satisfied for now as they are seeing new names replacing old names, but even that is drawing attention. Sheer inertia is keeping some of them; contracts with DXC hosting of services is keeping others. But the tide will turn, and DXC will be yet another giant shell.

  16. Grandfaloon

    Business owner

    The entire staff should just walk out now. Let the idiots pay for training their own offshore staff. I've some experience with Health Care organizations near shoring the medical staff with friends and relatives from India. They were not well trained, did not have social skills for the enterprise, and I refused to provide them any services once my contract was up.

  17. Big Al 23

    Really?

    Who knew all the talented scarce security experts lived in India?

  18. Cronos

    offshoring, but to the least experienced people in India/Philippines etc

    In my experience, you can get very good people in India, but they cost - they demand higher salaries - knowing their worth.

    At the end, whether you hire a top expert in the US or india, the price can be the same and the quality the same.

    But DXC hires the worst in India and pays low salaries, so low quality.

    1. Anonymous Coward
      Anonymous Coward

      Re: offshoring, but to the least experienced people in India/Philippines etc

      I'm going to actually defend some of my India colleagues here - they are not universally bad in the same way as not all Western staff are brilliant.

      What I see though is that certain cultures have pros and cons and that companies such as DXC fail to exploit the positives.

      If you have a highly process driven function, the Indians will work that like demons. They will cope with that far better than a US employee, who will slack off and can't be arsed after a short while.

      Where they fail is when it comes to initiative, what you rarely find is an Indian offering you a suggesting about process improvement or thinking outside of the box. In some security functions, the inability to think on your feet is a major failure, but what maybe some people don't understand is that "DXC security" is/was a whole raft of different things, most of which are not trying to outwit advanced nation state hackers (sorry all of you who thought it was all James Bond) but actually just grinding admin work.

      However, to say that all Indians contribute nothing positive is nasty slur that I must oppose!

  19. Thunderpants

    My last place offshored once and we lost about a third of the UK based department. Training was a nightmare and it took about two years to get the guys over there to a position where we were confident enough to unleash them on the customer as there was large staff turnover with the Indian company we partnered with. Things just settled down when a major customer announced they were leaving us after our botched renewal bid so the Indian operation got scrapped. Fast forward five years and they are doing it all again under new owners. Guess they'll never learn. :(

  20. sawatts

    Symptomatic of a company run by "professional managers" who have *no* idea about how the industry domain they are in, and continue to work to a generic playbook written in the 1950s.

  21. adam payne Silver badge

    At the same time, security skills are becoming both more specialized and more scarce.

    but apparently not that scarce in so called low cost countries.

  22. Anonymous Coward
    Anonymous Coward

    DXC Technology - "The Ripoff"

    DXC is like every other outsourcing company out there. They all sell snake oil. They are all full of BS on one level or another. It all depends on how much $$$ you want to pay for your snake oil. Do you want to get screwed for big $$$ or small $$$. There isn't one company out there, "Even MS, Dell, or whoever" that is using some super superior technological staff. They cannot afford it. You can't make money when you are paying six figures for all your employees all the way down to the desktop staff. Everyone is trying to make money. They may start off on the high end, but it won't be long before they are riffing people just like DXC is doing. They've been doing it for a long time. Getting rid of the 125K employee for the 70K employee that can and will do the exact same job. Then eventually they lay that one off for one in India, PR, or where ever the next cheapest place is. DXC Execs are just fleecing the company with their huge bonuses, cutting staff to make the company appear profitable all the while their contracts are running out on certain accounts that may not get renewed so they want to sell it to some other dummy.

    1. Anonymous Coward
      Anonymous Coward

      Re: DXC Technology - "The Ripoff"

      Its simply the post-growth 2008 wall street economy... its not just ITO.

      Look around you, see if any major company is paying well, focusing on quality and not cheapness.

      See how they all are laying off those dratted staff who have had the cheek to have had a "career" pre-2008 and accrued salaries commensurate with their experience and worth.

      No, with zero real growth, the only way those C-Levels are getting their bonuses are by grinding those people out of existence and running on empty.

      Its got to end, but when...

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