DXC Tech CEO continues to wash away HPE old guard

Just about getting closer to customers, says hard pressed outsourcing biz

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DXC Technologies has helped pack the bags of another HPE old-timer with global sales honcho Larry Stack said to be leaving of his own volition, although his role will not be replaced.

Stack was previously a chief sales officer at HPE Services for four years until he transferred with the business to DXC in April 2017 – lest we forget, CSC made up the other half of that unholy alliance.

In a memo to staff, seen by The Register, DXC CEO Mike Lawrie – who incidentally was the boss of CSC before the merger – confirmed that Stack is leaving the fold.

"Larry Stack, who led our Sell organisation during DXC Technology's first year, has decided to step away from DXC to explore other opportunities," Lawrie stated.

"Going forward, Larry's role will not be replaced. Instead, we will realign the Sell functions to achieve the objectives I laid out in January. At that time, I noted that we would be re-intensifying our focus on digital transformation and new business opportunities, and that we would step up our efforts to protect existing revenue and accounts."

Three areas of the business reported directly to Stack, who himself reported directly to Lawrie. Sales ops, the DXC Partner Network and the Strategic Deal team will now answer to Jim Smith, exec veep and head of the Digital Transformation Initiative.

Lawrie then spoke of other initiatives and the wider implications of the moves DXC is making.

"We also have been working to move the functions that make up CABO (Client, Account and Business Operations) closer to the parts of the business they serve. We will have a detailed announcement about CABO in the weeks ahead."

Back in January, El Reg exclusively revealed that DXC had cast off a gaggle of execs, all of which just so happened to join the firm from HPE in the prior spring.

This included Mike Nefkens, exec veep and GM at DXC but previously head of HPE Enterprise Services; and Eric Harmon, formerly senior veep and global practices and transformation at HPE and exec veep of operations and integration for the ten months he was at DXC.

Other DXC leavers that once held high-level positions at HPE included Art Wong, one-time senior veep of HPE's enterprise security services, a role he pretty much carried across to DXC; Howard Hughes, who ran the workplace and mobility divisions at DXC and was previously HPE senior veep of client transformations; and DXC global HR head Elcio Barcelos, who held the same role at HPE.

Lawrie said the changes in the sales units had a "single purpose: to get closer to the customer and position DXC for growth. And in doing so, we are positioning DXC to lead digital transformation for our clients."

It always makes El Reg smile when tech companies talk about taking their clients on the "journey" to digi-transformation, when many of them haven't necessarily been on that "journey" themselves.

Obviously, cost will have played a decisive role in Lawrie's decision making: DXC is forecasting cost savings of $1bn in its first year of life and has turned the screws on staff overheads and suppliers to help it get there. Other initiatives included rationalising office space and data centres, and redundancies. ®

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