2020 Annual Report
I hope you and your families are staying well.
I want to start by thanking our customers for trusting us with their business and our shareholders for investing in us. I am proud of the work our DXC Technology teams are doing, and am very pleased with the results we’ve helped our customers achieve, especially as we all navigate through COVID-19.
The focus of DXC is to execute our transformation journey, take care of our people, deliver the Enterprise Technology Stack for our customers and unlock value. Our commitment is to maintain a strong financial position consistent with an investment-grade profile.
Our transformation journey focuses on three things: strengthening our customer relationships and ensuring we are delivering for our customers; optimizing costs to better serve our customers by eliminating confusion and complexity; and seizing the market opportunity by cross-selling and expanding what we do with our customers across the Enterprise Technology Stack.
Customers: We are strengthening customer relationships and delivery. We’re proud and honored to share some of those stories in this year’s report. I personally check in with our customers regularly, assuring them of our commitment to their success and reminding them that their feedback is always welcome. We are especially focused on our top 200 customer accounts. During the last two quarters, we also have worked hard to turn around our challenged accounts and these customers have now entrusted us with $2.1 billion TCV of additional business, including renewals and new work. For me, new work is the best evidence that our strategy is working.
Optimizing Costs: We are optimizing costs to better serve our customers and eliminate confusion and complexity. We simplified our operating model to enable faster decision making, removed unnecessary management layers, and increased the speed and quality of delivery execution. We are also taking the appropriate steps to right-size our cost structure to our revenue as we see the needs and performance of the business changing. We are enabling our people to serve our customers faster, drive meaningful revenue growth and deepen customer relationships.
Market: We are seizing market opportunities by cross-selling and expanding what we do with our customers. We are reminded every day that what we do at DXC is incredibly relevant. The disruptions caused by COVID-19 have reinforced the importance of the entire IT estate and underscore the expertise and capabilities we deliver across our Enterprise Technology Stack.
We are helping our customers securely modernize their IT by running on-prem technology, migrating resources to the cloud, developing and adapting innovative applications, and harvesting data with advanced analytics and engineering.
We are delivering on our customers’ shifting needs. With the rise of COVID-19, we have helped many of our customers keep their businesses running by enabling their employees to work remotely and securely, with our workplace and mobility solutions. The feedback we received over the last few months for innovating and executing in a very demanding environment has been overwhelmingly positive.
A new DXC is being seen by our customers and the market. Here’s one example: for a leading healthtech company, we anticipated a surge in service desk calls from employees who suddenly found themselves working from home. We built a chatbot in 30 hours that reduced the call volume by 12 percent on the first day. The customer was thrilled and thanked us for our proactive response, out-of-the-box thinking, speed and collaboration. Customers remember when you deliver in tough times, and we’ll share more of their amazing stories in this report.
“At the heart of our transformation journey is taking care of our customers and our people who are delivering every day for our customers.”
Taking Care of Our People: We can’t do this work without the dedication and determination of our people at DXC. Their health and safety are always a top priority and especially important in the current environment. We are supporting our people and our customers by acting on the information from our COVID command center, which monitors the evolving situation around the clock. An industry-leading 99 percent of our 138,000 people are enabled to work virtually and flexibly from home, and they deliver every day for our customers. I could not be prouder of our team. We also continue to bring in new technology, account and delivery talent across the world, and make investments that recognize and reward our people, who are delivering for our customers.
Given the timing of our report, I want to share here what we’ve shared with all our people. At DXC, we’re clear: we will not condone social injustice, and I am committed to making sure this is not experienced within our company. We have established a special task force to examine our culture and make sure that it is one that supports diversity, inclusion and equality. We have also encouraged our people to amplify their voices through our SpeakUp! campaign, which provides multiple channels for ensuring anything that does not match our integrity, ethics and compliance standards is brought to light and corrected. Our goal is to ensure everyone at DXC knows we are listening, understanding and acting at pace so that DXC remains a place where everyone can grow, thrive and be proud to work.
Unlocking Value: We are committed to running a long-term sustainable business focused on the Enterprise Technology Stack and unlocking value by pursuing strategic alternatives for businesses that do not fit our long-term strategy. We will continue to rationalize our portfolio and strengthen our balance sheet while positioning DXC for growth.
We are making solid progress — and we also know we have much more to do. We are executing our transformation journey, strengthening customer relationships, optimizing costs, and seizing the market, while taking care of our people and unlocking value. I am confident this strategy will position DXC for longterm success and stability.
Mike Salvino
President and Chief Executive Officer
