Logica reported saw revenue grow 3% to £3.9 billion for the year ended 31 December 2011.

Adjusted operating profit was down significantly on last year at £114 million, which included the impact of the £132 million of restructuring and contract charges announced on 14 December 2011.

Logica said outsourcing revenue was up 9%, with second half revenue up 7%; consulting and professional services revenue was flat, with second half revenue down 1%. Revenue in the commercial sectors was up 7%, offset by a 3% decline in public sector revenue.

Logica said fourth quarter weakness was seen particularly in the Benelux and Sweden.

Commenting on the results, Andy Green, CEO, said: “2011 was a more difficult year then we had expected. While our order book at £4.6 billion was strong and revenue was up 3%, restructuring and contract charges resulted in a lower adjusted operating profit.

“Building on our successful long-term relationships with clients, we signed significant orders with clients such as Shell and Michelin. We had important wins with new clients such as BAE Systems and the Swedish Pensions Agency.

“The revenue outlook remains uncertain but we are on track in implementing the actions we announced in December. As a result, we expect our Benelux business to return to profit in 2012, our Swedish business to deliver an improved margin and our Outsourcing business to be strongly competitive. Even in tough market conditions, we expect our full year operating margin for 2012 to be above 6.5%.”

Source:  www.top-consultant.com

IT services outsourcer Logica is axing 1,300 jobs in the wake of a profits warning and as the Eurozone crisis deepens.

Logica said the cuts represented around three percent of its workforce. The restructuring, which includes disposing of some property, will cost the firm at least £93 million in one-off charges, in addition to a £39 million charge taken by Logica that is linked to re-evaluating some of its contracts.

The 1,300 job cuts, which are spread across the Benelux region, the UK and Sweden, are expected to eventually save the firm £50-£60 million a year, Logica said. Around 225 jobs are expected to go in the UK.

Logica said “pockets of weakness” it first saw in September “had widened through the quarter”. It now expects full year revenue growth to be around three percent for 2011. Full year results will be announced on 22 February 2012.

Andy Green, Logica CEO, said: “We deeply regret the impact job losses will have on the people affected. But we are confident that it is best for our clients, people and shareholders that we face squarely into the difficult economic conditions ahead. This decisive action will result in sustainable margin improvement in 2012.”

Wednesday’s job cuts announcement comes in a week the government said it was awarding Logica with a framework HR and finance services deal worth up to £500 million.

Source:  www.cio.co.uk

Logica, a leading business and technology service company, today announced the appointment of Gary Bullard as CEO UK and member of its Executive Committee.

Bullard will join Logica immediately and will take over from Craig Boundy, who will be leaving Logica at the end of the year to become Managing Director at Experian UK & Ireland.

Bullard will take on the leadership of a business which has recently been at the forefront of important deals in both the Public and commercial sectors with clients such as Shell and the Serious Organised Crime Agency. He will bring a strong focus on the client, proven knowledge of the industry acquired during a 25-year career at IBM where he ran their Global Solutions business, and a clear track record around introducing diversity in organisations.

He will report to Logica’s CEO, Andy Green.

Commenting on these management changes, Green said: “I am delighted to announce Gary’s appointment as CEO UK today. His immediate appointment allows a smooth transition for our people and our clients before Craig’s departure later this year.

“I’d like to thank Craig for the important contribution that he has made over the last four years and wish him well for the future.”

Bullard added: “Logica has been significantly transformed with great wins and new people joining the organisation over the last few years. Logica is well recognised in the UK market as a company which brings innovative solutions in the work they do with clients and I really am looking forward to taking this business forward.”

Bullard has over 30 years experience in the IT and telecoms industries. He spent over 25 years at IBM in a variety of senior executive positions in London, Paris and New York. In his last position there he was General Manager, Global Solutions – one of IBM’s fastest growing initiatives which represented around $12bn of revenues.

From IBM he became President, BT Global Services responsible for all of BT’s business with its UK corporate clients. He then helped lead the integration of BT’s corporate business on a global basis. In 2007, he left to further diversify his career, taking on interim executive management and consulting assignments from major corporations, including Logica.

He also founded Catquin, a company which supports senior female executives in furthering or diversifying their careers and also helps companies in supporting female diversity. He served as a Non-Executive Director of Chloride Group from 2005 to 2010 and is currently a Non-Executive Director and Chairman of the remuneration committee of Rotork plc, a FTSE industrial company.

Source:  www.top-consultant.com

Himanshu Raja has been appointed as Chief Financial Officer and Executive Director of the Logica Board, with effect from 5 September 2011.

Raja brings a wealth of financial planning and operational experience to Logica, having served in a number of senior finance roles at multinational telecoms operators including BT, MCI, UUNET and MFS. He has spent the last ten years at BT. Since December 2010, he has been CFO of BT Global Services. Prior to that, he held various roles, ranging from Group Capital Controller and CFO for BT Innovate and Design to CFO of BT Operate and BT Wholesale.

Raja is a qualified chartered accountant and holds an honours degree in law.

David Tyler, Chairman, commented: “The Board is delighted that Himanshu has agreed to join us as our CFO. We conducted a rigorous international search over five months to find the right person. Himanshu has the skills and cultural fit to lead Logica’s excellent finance team and to build further on the work undertaken over the last three years to build a more globally integrated finance function. I would like to take this opportunity to welcome him to the Board and to Logica.”

Himanshu Raja, CFO-designate, said: “I am thrilled to be taking on this exciting role. Logica has taken a long term view and has put in place a sound business strategy and financially disciplined approach over the last few years. This has meant that the company has emerged from the downturn in a strong and robust position. I look forward to working with my colleagues on the Board and Executive Committee to take advantage of the opportunities ahead.”

Source:  www.top-consultant.com

Logica, a leading business and technology service company, has entered into an agreement with Microsoft to offer cloud solutions to clients. Utilising Microsoft’s public and private cloud offerings, it will deliver distinctive offerings across the Europe, Middle East and Africa (EMEA) region. It is estimated the exclusive alliance will result in a 10% growth in Logica’s cloud revenue over the course of 2011.

Clients will be able to realize the benefits of cloud services by combining Logica’s business consulting approach and unique industry specific offerings with Microsoft’s Windows Azure platform, Hyper-V Cloud and Microsoft Office 365. These benefits include reduced cost, agility and business growth through collaboration. Logica and Microsoft’s alliance is already bearing fruit with three new clients: Talentsoft, Backelite and Ventadis are now working with both companies’ teams in France to use Windows Azure in their business.

The joint effort includes the launch of a new client program, where both organizations will partner with a select group of clients to design and launch cloud solutions. In addition, Logica will be featured in the Microsoft Cloud Power marketing and advertising campaign across Europe.

“Today’s alliance announcement is significant for our clients across the European region as they are now able to access the benefits of market leading cloud platforms combined with Logica’s unique understanding of their business. We have partnered with Microsoft because of their industry leading approach to cloud and we share a common desire to deliver business benefits to customers,” commented Andy Green, Chief Executive Officer, Logica.

The alliance between Logica and Microsoft shows a commitment by both companies to go to market side by side to satisfy the needs of mutual clients. As part of the agreement Logica architects and consultants will have early access to Microsoft cloud technologies and solutions, and will therefore be best placed to make recommendations to our clients. This will allow European clients to accelerate their business transformation while experiencing the reliability, speed and cost savings which cloud technologies can provide. Microsoft cloud solutions enable customers to cost-effectively enhance business results through productivity applications, application development and hosting, and private cloud infrastructure.

“We are currently at a critical juncture where enterprises are moving from consideration to adoption of cloud services. Our joint industry offerings will combine Logica’s in-depth client knowledge with Microsoft’s cloud solutions and expertise, including our Windows Azure platform, Hyper-V, and Office 365,” commented Jean-Philippe Courtois, President, Microsoft International. “This alliance will empower leading companies across Europe to start the journey to the cloud with confidence with Microsoft and Logica.”

“We are delighted with Logica’s adoption of the Windows Azure platform. Having worked together for many years, we have first-hand experience of Logica’s client intimacy and its very strong presence in all our key European geographies. Our industry solutions will combine Logica’s in-depth client knowledge with Microsoft’s cloud solutions and expertise,” commented Larry Orecklin, Vice President, Worldwide Specialist Sales, Microsoft.

“Our clients in the EMEA region are already looking to launch new industry-specific and horizontal capabilities based on Logica’s existing Cloud offerings.” added Amanda Mesler, CEO, Logica Business Consulting. “We have made a strategic decision to focus on the Windows Azure platform, Hyper-V Cloud and Office 365 to enable many of these initiatives. Logica wants to be synonymous with Cloud innovation and this deal supports that vision. We are completely focused on helping our clients to understand their business and its supporting architecture in order to create the right processes, technology and governance. This is our business consulting approach and will help guide our clients towards delivering business value from IT.”

Joël Bentolia, Chief Technical Officer from TalentSoft, commented: “We were looking to offer our customers greater agility in the international development of our portfolio of offerings and decided to migrate our application to the Cloud using Microsoft’s Cloud Computing Solution, Windows Azure. Logica added value by analyzing possible migration issues, defining and executing the migration, ensuring the stability of service to our customers and transferring skills to our team. We are already seeing benefits of moving to Microsoft’s Cloud Solution with significant reduction in management costs of the application and reduced deployment time from weeks to hours.”

The announcement extends Logica’s existing relationship with Microsoft, working together systematically to help our clients build their business for the future. Our broad set of vertical consulting, systems integration and outsourcing skills complements Microsoft’s business model, and the cloud agreement builds-upon our well-established solutions using Dynamics ERP and CRM, business productivity tools including SharePoint, and our extensive infrastructure capability.

Source:  Top-Consultant

Logica announced that Seamus Keating, currently Logica’s Chief Operations and Finance Officer, has been appointed CEO, Benelux, while retaining his responsibilities as Chief Operations Officer. He remains an Executive Director of the Logica Board.

Keating will continue to act as Group CFO during the search process for his successor, which is currently under way.

He assumes responsibility for the Benelux following the decision of Wilbert Kieboom to leave the Group to pursue other opportunities. Wilbert, who has led the organisational transformation of the Benelux business over the last two years, will remain with Logica until early 2011 to facilitate the transition.

Keating has been a member of the Board since being appointed Chief Financial Officer in February 2002. He joined Logica in 1999 as Director of Group Finance. He is also a Non-Executive Director of Mouchel Group plc.

Logica’s Benelux operations employed approximately 5,500 people and accounted for approximately 16% of Logica’s group revenue in 2009.

David Tyler, Chairman, commented: “We are delighted that Seamus has agreed to take on the important role of leading our Benelux business, given his deep operational and financial knowledge of Logica. We are confident that he will benefit from the strong management teams in place across the Group to support him as he makes this transition, with the senior members of the finance team particularly taking on wider responsibilities.”

Andy Green, CEO, added: “With his thorough understanding of our business, Seamus is well placed to continue the transformation of our Benelux business, as it starts to emerge from challenging economic conditions. As Chief Operations Officer, he will also ensure we continue to execute on our operational priorities.

“We thank Wilbert for his contribution to the business over the last two years. He has been instrumental in developing the Logica organisation in the Benelux, while maintaining a solid market position in what has been a difficult market place. We wish him well in his new endeavours.”

Keating said: “I am excited to be taking on this role which will allow me to focus more fully on the operational side of the business. We have great people and a strong management team in the Benelux and I look forward to working closely with them. My role as Executive Partner of our Financial Services practice has already given me exposure to a number of our Benelux clients. The next few years will be an opportunity to deepen our relationships with them as the economic environment improves.”

Source:  Top-Consultant

For the third quarter ended 30 September 2010, Logica reported revenue was up slightly on last year at £863 million (2009: £862 million).

Commenting on today’s announcement, Andy Green, CEO said: “Logica returned to growth in the third quarter, reflecting strengthened financial services demand across all our markets. While European recovery remains uneven, we continue to expect modest second half revenue growth and adjusted operating margin for 2010 as a whole at a similar level to last year. Our good order backlog in Outsourcing, combined with improving trends in Consulting and Professional Services, positions us well for 2011.”

Logica said it employed 39,036 people at the end of September, compared to 39,074 at the end of June 2010. Attrition for the group was up significantly on the same time last year at 13% (2009: 7%) and utilisation is also high in most markets. With attrition continuing to rise through the quarter in all of Logica’s major markets, it is now recruiting across the Group, while continuing to focus particular attention on strengthening its capacity in its offshore and nearshore centres.

New orders totalled £758 million (2009: £829 million), with fewer large deals closing in the summer months this year and with the short term effect of slower decision making in the UK public sector. On a year to date basis, Logica’s book to bill was 106% (2009: 107%).

Outsourcing orders are up 8% for the quarter and up 13% on a year to date basis. Outsourcing book to bill is 108% on a year to date basis (2009: 103%) and Logica said it expects good growth in Outsourcing Services through the remainder of the year and into 2011.

Consulting and Professional Services book to bill remains healthy at 105% on a year to date basis (2009: 109%), with recovery in the financial services sector remaining the strongest driver of demand.

Outsourcing revenue was up 8% year to date to £1.16 billion and continued to show good growth in the third quarter with revenue up 7% to £373 million (2009: £350 million).

The rate of decline in Logica’s Consulting and Professional Services continued to slow. Revenue was down 4% in the third quarter, compared to a decline of 7% in the first half. Revenue on a year to date basis now stands at £1,557 million.

France continued to be Logica’s strongest performing market on revenue growth. Revenue was up 7% in the third quarter to £188 million, with year to date growth also at 7%. This was based on a continuing strong performance across the public and commercial sectors.

Despite Outsourcing orders being down against an exceptionally strong quarter last year, the business overall delivered a solid Q3 book to bill at 106% (2009: 167%). On a year to date basis, book to bill is 113% (137%).

In the UK, revenue was £172 million in the third quarter, down 11% against a strong comparative in 2009. On a year to date basis, revenue is down 6% to £539 million with Public Sector revenue down 5%. Logica expects that UK revenue will grow in the fourth quarter and that full year revenue to be in the range of £720 to 730 million.

Source: Top-Consultant

Logica, the business and technology service company, announced the appointment of Nick Ford as global consulting practice leader for payments. Ford, who joins from Capgemini, will be responsible for further developing Logica’s strategic payments consulting business globally. This will include strengthening the end to end value proposition of its payments offerings, supporting specific client and country business development, and leading strategic consultancy assignments in payments. Due to the operational and financial services remit of his role, Ford will report to Global Products Business (GPB) managing director, Nigel Turner, and also to Laurent Coenca, global head of consulting in financial services. “Financial institutions are facing increased pressure by both corporates, who are streamlining their payments operations, and retail customers who expect more sophisticated payment methods. To increase customer loyalty and gain market share, banks need to develop efficient, flexible and scalable payments services,” said Nick Ford, global consulting practice leader for payments, Logica GPB. “I look forward to helping customers address these challenges in my new role. I firmly believe that Logica’s extensive product portfolio, service and consultancy expertise represent a unique proposition within the payments marketplace.” Ford brings more than 20 years of sales, strategy and operational experience to Logica – the past 14 of which were spent in senior management consultancy positions across the financial services and payments industries. In his previous role, he served as Capgemini’s head of consulting and payments for financial services. In this position, he advised major European and UK banks on payments strategies, process re-engineering, payments in-sourcing and SEPA. Prior to joining Capgemini, Ford was a senior executive for Accenture (financial services), a vice president of consulting for i2 Technologies and a director for PwC (financial services). He has also worked for NatWest/RBS as director of procurement and supply chain. Nigel Turner, managing director, Logica GPB added: “Ford’s wealth of experience in payments and financial services will enhance our payments consulting, service and product offerings. His appointment is part of our strategy to strengthen our payments consulting and implementations across all regions. We are delighted to have Ford onboard and have no doubt that he will be a great asset both to the GPB and the wider financial services division.”

Source:  Top-Consultant

Logica, a leading business and technology service company, today announces that it has signed a Memorandum of Understanding (MoU) with the UK Government following the process initiated by the Minister for the Cabinet Office, Francis Maude, in July.

Under the MoU, Logica will continue to deliver all of its existing contracts, having agreed a number of efficiency savings with Government. The savings agreed were anticipated in our forecasts and therefore our expectations as set out in our interim announcement remain unchanged. Commenting on this announcement, Craig Boundy, Chief Executive Officer of Logica’s UK business said:

“We are pleased to have reached an agreement with Francis Maude and his team in a speedy and straightforward fashion. We now look forward to continuing our engagement with Government on longer-term initiatives where we can use our expertise in deploying technology to help bring better services to the citizen while saving money in the process.”

Logica is a key IT supplier to the UK Government. It has supplied to Government as a client for over 40 years and continues to work across more than 55 departments and agencies. Logica’s UK Public Sector revenue accounted for around 12% of Group revenue in 2009.

Source:  Top-Consultant

Logica, a business and technology service company, announced the appointment of Peter Ryan as Chief Client Officer and member of its Executive Committee. Peter will be responsible for driving Logica’s engagement with its clients and will lead the global sales and marketing organisation. He will report to Logica’s CEO, Andy Green.

Ryan’s previous role was EVP Global Sales and Services and Corporate Officer at Sun Microsystems where he had responsibility for Sun’s client facing strategies. Ryan also served as Senior Vice President, Americas Region and Senior Vice President, EMEA Region at Sun. Prior to joining Sun, he was chairman of a number of venture capital backed businesses in the UK. Ryan started his career at the UK Home Office and subsequently spent 11 years at IBM.

Ryan’s appointment follows the appointment of Amanda Mesler, currently Chief Client Officer, as CEO, Business Consulting. Mesler will succeed Patrick Guimbal as CEO, Business Consulting. Guimbal will assume the new role of CEO, Strategic Programmes, leading Logica’s execution against its strategic priorities. These changes will be effective from 1 October.

Commenting on these management changes, Andy Green, CEO, Logica, said: “With his proven understanding of the business and technology service industry and his absolute commitment to the client, Peter is the ideal candidate to further strengthen Logica’s sales and marketing operations. He brings a wealth of experience of leading global sales teams and developing really effective sales operations. I am delighted to welcome Peter to the Logica team.

“Amanda’s extensive consulting experience gained at Bearing Point/KPMG Consulting and EDS will ensure that we build on the strong foundations Patrick has created for our global Business Consulting business. Patrick will work closely with me and our executive team colleagues to ensure that we effectively drive through the key components of our strategy.”

Ryan, Chief Client Officer designate, said: “I am really excited about joining Logica, particularly at such an interesting time in its evolution. My experience is particularly relevant as Logica seeks to strengthen its engagement with clients and drive value for them. I look forward to working with the rest of the team to put our clients at the heart of everything we do at Logica.”

Source:  Top-Consultant News