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Dxc Technology Finance

Enable business transformation through technology services and solutions while delivering exceptional financial discipline and stakeholder value

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Enable business transformation through technology services and solutions while delivering exceptional financial discipline and stakeholder value

Strengths

  • EXPERTISE: Deep industry knowledge across sectors including insurance
  • SCALE: Global delivery capabilities serving Fortune 500 enterprises
  • PROCESS: Established financial governance and controls framework
  • PLATFORM: Strong enterprise application modernization capabilities
  • PARTNERSHIPS: Strategic alliances with major tech providers

Weaknesses

  • LEGACY: Continued reliance on declining traditional IT services
  • RETENTION: Challenges in attracting and retaining top finance talent
  • MARGINS: Operating margins below industry peers at ~7-8%
  • FORECASTING: Inconsistent accuracy in financial projections
  • SYSTEMS: Multiple disjointed financial systems from acquisitions

Opportunities

  • EXPANSION: Growing demand for specialized industry solutions
  • AUTOMATION: Financial operations efficiency through AI/ML adoption
  • CLOUD: Transition from legacy IT to high-growth cloud services
  • DATA: Monetization of financial analytics capabilities
  • ESG: Leadership in sustainability-focused financial reporting

Threats

  • COMPETITION: Increasing pressure from cloud hyperscalers
  • ECONOMY: Reduced IT spending during economic uncertainty
  • REGULATORY: Evolving compliance requirements across global markets
  • PRICING: Commoditization pressures on traditional service offerings
  • DISRUPTION: Rapid tech innovation shortening strategic cycles

Key Priorities

  • MODERNIZE: Transform financial systems for real-time insights
  • TALENT: Develop finance expertise in AI and analytics capabilities
  • MARGINS: Implement cost optimization and portfolio rationalization
  • ANALYTICS: Enhance predictive financial modeling capabilities
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Enable business transformation through technology services and solutions while delivering exceptional financial discipline and stakeholder value

MODERNIZE FINANCE

Transform finance operations through digital acceleration

  • PLATFORM: Implement unified global financial analytics platform with real-time dashboards for all BUs by Q3
  • AUTOMATION: Reduce financial close process from 8 to 5 days by automating 40% of manual reconciliation processes
  • INTEGRATION: Consolidate 6 legacy financial systems into unified ERP platform reducing maintenance costs by 25%
  • PREDICT: Deploy AI forecasting models for 3 key financial metrics achieving 90% accuracy against actuals
TALENT REVOLUTION

Build future-ready finance organization with elite talent

  • CAPABILITY: Train 85% of finance staff on advanced analytics and AI applications through certification program
  • ATTRACT: Implement finance innovation lab attracting 25 specialized data science/finance hybrid professionals
  • RETENTION: Reduce finance organization attrition from 16% to 10% through targeted development programs
  • STRUCTURE: Redesign finance org model establishing Centers of Excellence for analytics and automation
MARGIN EXCELLENCE

Drive sustainable profitability growth across portfolio

  • OPTIMIZATION: Implement zero-based budgeting approach reducing G&A expenses by $120M or 150 basis points
  • PORTFOLIO: Complete strategic review of service offerings exiting bottom 10% margin business lines
  • PROCESS: Redesign 12 core financial workflows reducing costs by 30% and improving quality metrics by 25%
  • PRICING: Implement value-based pricing model for 40% of services improving average contract margins by 300 bps
ANALYTICS MASTERY

Unleash predictive insights driving strategic decisions

  • DASHBOARD: Deploy executive financial insights platform with predictive analytics used by 100% of leadership
  • INSIGHTS: Generate $150M in cost avoidance through AI-powered spend analytics identifying optimization areas
  • METRICS: Implement 6 leading indicators tracking transformation progress with real-time visibility
  • MODEL: Build advanced scenario planning capability simulating financial impacts for all strategic decisions
METRICS
  • Operating margin: 10% by FY2025, 12% by FY2026
  • GBS segment growth: 5% YoY by Q4 FY2025
  • Finance cost as % of revenue: Reduce from 1.8% to 1.2% by FY2026
VALUES
  • Deliver: Excellence for clients through accountability and measurable outcomes
  • Collaborate: Teamwork across boundaries to solve complex problems
  • Community: Build trusted relationships with clients, partners and colleagues
  • Care: Steward responsible business practices and resource management
  • Do the right thing: Act with integrity and transparency in all financial operations
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Align the learnings

Dxc Technology Finance Retrospective

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Enable business transformation through technology services and solutions while delivering exceptional financial discipline and stakeholder value

What Went Well

  • REVENUE: Stabilization of quarterly revenue decline demonstrates success
  • DISCIPLINE: Delivered $700 million in cost-savings ahead of schedule
  • CLOUD: Achieved double-digit growth in cloud migration services revenue
  • CASH: Maintained strong cash flow performance exceeding expectations

Not So Well

  • ATTRITION: Employee turnover remains above industry average at 19%
  • CONTRACTS: Slower-than-expected pace of new logo acquisition vs targets
  • GUIDANCE: Adjusted annual revenue forecast downward by 2% mid-year
  • MARGINS: Operating margin improvement progress below initial targets

Learnings

  • FOCUS: Need for greater portfolio rationalization to exit low-margin areas
  • TRANSPARENCY: Improved investor communication about transformation path
  • METRICS: Refined KPIs needed to better track transformation progress
  • INCENTIVES: Compensation structure requires alignment with margin goals

Action Items

  • ACCELERATE: Increase pace of workforce transformation and upskilling
  • OPTIMIZE: Conduct zero-based review of all discretionary spending
  • AUTOMATE: Expand deployment of intelligent automation to reduce costs
  • DASHBOARD: Implement real-time financial performance metrics visibility
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Enable business transformation through technology services and solutions while delivering exceptional financial discipline and stakeholder value

Strengths

  • FOUNDATION: Established analytics capabilities in finance operations
  • LEADERSHIP: Executive commitment to AI-driven transformation
  • INFRASTRUCTURE: Modern cloud ERP backbone for AI integration
  • DATA: Extensive historical financial datasets for AI training
  • EXPERTISE: Growing team of financial data scientists

Weaknesses

  • ADOPTION: Limited implementation of AI in financial workflows
  • SILOS: Fragmented data across multiple financial systems
  • SKILLS: Finance team AI literacy and capability gaps
  • GOVERNANCE: Incomplete AI risk management framework for finance
  • INTEGRATION: Disconnected AI initiatives across finance functions

Opportunities

  • AUTOMATION: Streamline 80% of routine financial processes by 2026
  • FORECASTING: Enhance accuracy of financial projections by 30%
  • INSIGHTS: Develop real-time financial analytics dashboards
  • EFFICIENCY: Reduce close cycle times by 40% through AI
  • COMPLIANCE: Automate regulatory reporting and risk detection

Threats

  • SECURITY: Financial data privacy concerns with AI implementation
  • TALENT: Market competition for AI/finance hybrid expertise
  • ACCURACY: Model reliability for critical financial decisions
  • COMPLEXITY: Managing AI explainability in financial reporting
  • INVESTMENT: Balancing AI expenditure with immediate ROI

Key Priorities

  • TRANSFORM: Implement AI-powered financial forecasting platform
  • UPSKILL: Develop AI capabilities across finance organization
  • AUTOMATE: Accelerate adoption of intelligent process automation
  • GOVERN: Establish finance-specific AI governance framework