James Friedman: Great. I’ll jump back in the queue. Thank you.
Operator: Your next question comes from the line of Bryan Keane from Deutsche Bank. Your line is open.
Bryan Keane: Hi, guys. Just wanted to step back for a second on Mike Salvino. Departure was kind of abrupt there. Maybe you can help us understand what exactly happened with Mike. And then he hired almost the entire leadership team. So I guess my worry would be what’s the attrition like for that leadership team? And do you expect people to stick around now that he’s left?
Raul Fernandez: Great. Thanks for asking that question. We really, as a Board and me individually appreciate the work that he did in stabilizing the company, in executing some asset sales that were very meaningful for the company at a critical juncture and a point in its history. And then, as you said, for bringing on great people. I have spent the last 40 days meeting with them, planning with them, coaching them, getting feedback from them and figuring out how we as a team can operate better. I am very pleased with the engagement. We’re all looking forward to executing better and faster. And so I’m happy — very happy with the team that’s here. And so I just expect us to continue to move forward. I think they see the opportunity. I see multiple ways to win here. It’s not one game plan, not one way. There’s multiple ways, and that’s a very exciting position to be in.
Bryan Keane: Got it. And then just another kind of big picture for you, Raul. Where are we in the transformation of the company, the turnaround? I know Mike was working through that. And now it feels like maybe with some transition and a little bit of a tougher market, it might be a few more extra years added to actually do the turnaround. Can you just give us kind of more of a big picture where we are at DXC and how long it might take to get it to where you want it to be? .
Raul Fernandez: Yeah. I think if you isolate up the six and you say, look, four have great demand backdrop they — four out of six business units have great demand drop. Maybe some of the near-term project work slows down a little because of global economic uncertainty. But the bottom line is, we are nowhere near the full digital transformation as companies, as countries as nations and AI is now fueling much more of that. And we’re very well positioned kind of in this next wave. If you step back and think about where AI in the near term is going to have the most impact, it’s with organizations with large data sets. We have a lot of clients with large data sets that — and we do a lot of work with those clients, being able to become a leader in those companies to help them in the next transformation I feel super confident about.
So the demand backdrop is there. The reality on the modern workplace and the ITO front, it’s clearly a shrinking macro environment. But we have an ability, I believe, to make it more efficient, meaning reverse the decline and then also make it more cash efficient, meaning it will throw off more cash, and help fuel other parts of the business. As we get into the next call, I’ll be able to go deeper on how I would look at this business by business unit and metrics that matter. 40 days in, you’re going to have to give me a minute here to finish catching up and finish formulating what I think is a better way of approaching this.
Bryan Keane: Got it. Thanks and good luck.
Raul Fernandez: Thank you.
Operator: Your next question comes from the line of Darrin Peller from Wolfe Research. Your line is open. .
Darrin Peller: Look, Raul, I appreciate it’s been 40 days, but I know you’ve also had some experience on the Board. I guess I just want to understand your thought process around some of the most challenged categories in GIS. So maybe just — if you could just touch on a bit around what you think — if you think should anything should change on the strategy from before until today on modern workplace or perhaps cloud infrastructure and ITO. And if there’s anything in your mind that might be able to move the needle a little bit faster. It’s been an elusive inflection in revenue growth for the company for a long time. And I think we’re all hoping to see something that might be a little more innovative on that front. So just any thoughts would be great.
Raul Fernandez: Yeah. Look, I think a couple of thoughts. And again, I haven’t had as much time to dig in on all of them. But I think modern workplace, when you think about the customer support services and the impact that AI has, the relationship we have with Microsoft, the ability to take what is now a — still a pretty human-centric centric ticket/issue resolution business process and to apply in partnership very closely with Microsoft tools that will make it ticketless, self-service, more intuitive. I think there is a tailwind on that front that should, if we’re able to capture some of that business and become more efficient, reverse the decline. One of the things that that Rob and I pledge is to manage your expectations better.
We haven’t had a great track record of hitting all the expectations that have been set out in the past. So we want to be measured and we also want to be thoughtful about it. So I’m not going to talk about numbers or reversals in those two business units because I need more time to dig into it. But I know we can do better and we will do better.
Darrin Peller: And then I guess, just very quickly, the progress and the success of the Analytics & Engineering and frankly, the typical growth that we could see out of applications, I think, is something encouraging. And so I guess it goes back to the — we’ve heard from different executive leadership of the company over the years, but cross-selling, right? I’m trying to take the relationships you have in GIS and sort of harvest some of those customers to provide services that they would need that are really in demand now, right? I mean is that something that you see going well at the company before today or is there some room to improve that from your perspective?
Raul Fernandez: There’s definitely room to improve it. And I think it’s not just cross-selling, but being smarter at solutioning, how are we engineering our response, hopefully, to something that’s not an RFP, is something that we’ve come up with proactively. If it is an RFP, how are we putting something forward that’s differentiated technically that provides us an ability to make more margin that takes examples of work that maybe we’ve done before and where we can replicate a methodology, replicate a framework, ultimately replicate code and reuse code there’s a lot of basic optimization. If you want to call it that, on how we enter engagements and then some of that technology that we develop and write not just across the company but across other verticals.
So again, there is no one magic answer, no one magic, we’re going to do one thing differently. We’re going to do a lot of things differently. And fortunately, we’ve got great professionals here from companies backgrounds, experiences with different models in terms of the business units that they ran in the past, how they went to market. And look at someone who started one of these digital companies with myself and three engineers in the mid-‘90s with no venture capital, so I use my savings. I know exactly what it’s like to sell. I know what it’s like to deliver. I know what it’s like to collect the cash. And I know what it’s like to scale. And so the numbers are bigger here, but the basic path of doing that, then doing it smarter than doing it in a more profitable way is something that I’ve lived through personally.
