And I see here, I think we can elevate it and then we can accelerate it, and that should show in our financial results.
Darrin Peller: Thank you.
Operator: Your next question comes from the line of Tien-Tsin Huang from JPMorgan. Your line is open.
Tien-Tsin Huang: Hey, thank you. Look forward to working with you, Raul. You have a great sort of background and you’ve seen a lot of different businesses, including a tech and systems integration on media. I’m just curious, sort of what you’ve learned from that and what you’ll bring to the table here as you take on the task here of DXC and given it’s been in turnaround mode as a lot of people have talked to you about already, I’m just curious sort of what you’ll bring to the table specifically, if you don’t mind going through that? Thank you.
Raul Fernandez: Sure. Look, I think it’s operational experience literally from the ground up. I think it’s working with much larger companies, both, again, as an adviser, as an owner, as a shareholder, knowing what those transitions are like. but also knowing best-in-class, look, I’ve sat on the Broadcom board now for over three years, one of the best companies on the planet, does incredible work on M&A and they’re ready for M&A. Obviously, we just did one of the biggest transactions in tech history. But I can tell you that we’re not ready right now. We can get ready, we will get ready. But even if we had the desire to use capital allocation in a different way, I wouldn’t use it that way because we’re not ready to do it. And so I’m very realistic and grounded, but I’m also setting the foundation that when we are ready, we’ll know because we’re going to keep a dashboard of it by business unit and then that will open up potentially an opportunity to do something on that front.
But just to get back to your question, I’m going to take the experiences in big companies and small companies, and I’m going to apply it here. I think one of the things that excites me as I’ve traveled around and seen the work that we do is we have incredible reference ability, incredible brands, incredible case studies. We have not done a great job at storytelling. I’ve dealt with a lot of companies that are literally dreams and a whiteboard presentation and all of a sudden that becomes a product and that product then gets sold and then it grows and it becomes a company and then that gets sold. So I’ve seen it being done with a dream. And I think the foundation that we have here is just so solid that if we really focus on operational excellence across the board, from preselling solution through delivery and then making it better and faster and more profitable, we’ll see the results.
And it’s a lot of little actions. And one of the great things here is smarter way of doing work gets amplified by 130,000 people globally. So that’s part of the job here is to lead that, identify, lead it and be an evangelist for it.
Tien-Tsin Huang: No. Thank you for that. That’s great. And then just my quick follow-up, and I’ll jump off. I know Brian asked about strategy. But just I know Mike Salvino was talking about transitioning from stability to higher performance that always resonated with me. In your mind, is that still the case? Where are we in that spectrum? Are we still thinking — are you thinking maybe more in the stability focus is the right call for now, if you follow my question?
Raul Fernandez: Yeah. Look, it’s a great question, and I’ll be able to answer it a little bit more in more detail on the next earnings call to gauge how long it will take to do some of the basic things that we can do better and then how that ultimately impacts new wins, new margins and how that flows through our business units, how quickly we can deliver that. I want to be measured and thoughtful on that and not make promises that we can’t deliver on. So great question. I’ll have more on the next call on that.
Tien-Tsin Huang: Very good. Thank you for taking my questions.
Operator: Your next question comes from the line of Ashwin Shirvaikar from Citi. Your line is open.
Ashwin Shirvaikar: Thanks. Hello. Congratulations on the CEO appointment. I look forward to getting to know you better. I guess my first question alludes to the comment you had earlier on this call about how a private entity might look at some of DXC’s assets differently. Do you think DXC is better off in public markets? Was that some of the parts comment, if you could shed some more light on how you’re approaching the business?
Raul Fernandez: Great. Nice to meet you, look forward to getting together. As I looked at the business units, one of the things that we’ve tried to do is to say, okay, testing class comps, let’s not do the, okay, we get comped against these groups, best-in-class comp for your business units. So we’re in the process of putting that together and looking at the delta between the key metrics the best-in-class is for every single business unit and what the delta is from where we’re performing to where we should be performing. Breaking it down by business unit is super helpful. It makes it real. It makes it personal. It’s obviously more accurate, right, because our SaaS software insurance tech business is very different than our services application and engineering business.
So that’s a process that we’re in right now. We’re a public company. We’re here. We’re going to perform well as a public company. We’re going to execute. And so I won’t comment on anything beyond that other than learning or taking from being on both sides of the equation, public and private, we’re going to extrapolate the right goals, the right lessons and the right targets and then execute on them.
Ashwin Shirvaikar: Got it. It seems more like a benchmarking and goal setting exercise. Second question is good to hear your points on execution, how it needs to improve. Does that necessarily translate into sort of management exits, potential talent upgrades or is it more a comment on capabilities with regards to — is there an investment cycle coming from DXC?
Raul Fernandez: Look, I think it’s a combination of all of the above, right? In any business, you’re competing for the most important thing, which is your human capital and talent. So keeping the great talent that we have, attracting the additional talent that we need to make ourselves better is key in this business, key in any business, but it’s absolutely key in this business. So that will be a continued focus. And I think one thing that does help us is when we do this benchmarking by business unit, you’re going to see the areas which — where you’re on point, where you’re totally off point, and where you’re close, and that’s going to then drive some decisions about what talent mix you need going forward. So talent is absolutely key here.
