Wider Margins

As part of their plan for sustainable margin expansion, the DXC executives believe management can wring out $1 billion in first-year savings, with 70 percent of that coming from workforce optimization measures and finding supply chain efficiencies.

But in the third year, fiscal year 2020, DXC projects that those same two areas will drive more than 82 percent – $1.85 billion – of a projected $2.25 billion in cost savings.

In each of those years, the company plans to re-invest 15 to 20 percent of that savings in the business.