Reply to post: How NOT to Win Friends and Influence People

DXC squeezes suppliers for extra margin, issues ultimatum

Erik4872

How NOT to Win Friends and Influence People

That's pretty arrogant, but I've seen that happen to friends of mine who work contract jobs in finance. One day the bank will just say "we're cutting rates by 10% and/or changing your contract terms effective immediately. Agree by 5 PM or pack your stuff and go."

Now, contracting is one of those things where you know you never have a stable job but the pay can make up for it. Purchasing OTOH...how many suppliers do you think rely on large corporations overpaying for items because of some contract negotiated years back? I'm betting it's a lot. DXC may just be another rebranding of HP Services, EDS and CSC, but it sounds like they're trying for a margin squeeze right out of the gate so they can "look tough" to their supply chain.

It'll be interesting to see what this company does. You could argue that with the cloudy world upon us, companies will become even less aware of what happens inside the IT magic box, but I guess they have to balance that with the fact that most companies have been around the block with IT outsourcing once or twice before. Hopefully this means they are less susceptible to the sales tactics that allowed EDS/CSC to charge rates that allowed suppliers to overcharge for toilet paper...doubt it though.

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