 |
|
| CURRENT SECTION :: Jobs | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
Logica, the ailing IT services group, has unveiled an offshore plan to revive its fortunes that will start with the loss of 1,300 jobs, 500 of which will be in the UK. Announced yesterday, chief executive Andy Green said redundancies will hit back-office roles in HR and finance, jobs now destined for Morocco, the Philippines and India. The result will see the number of offshore and near-shore staff on the company’s payroll more than double, from 3,450 today, to 8,000 by the end of next year. In the UK, which represents about one fifth of Logica’s business, the “streamlining” will stretch to a rationalisation of its property, dictating a 40% cut to desk-space. The cost-cutting measures are designed to support a focus on growing the company, which will require stronger investment in automated infrastructures and security. To this end, and explaining why outsourcing will be its fastest growing area, Logica plans to hire more consultants, increasing from 2,500 to 3,500 by 2010. The planned intake of such experts follows the group’s inability to exploit the skills it recently acquired in Europe to sufficiently drive improvements across the business. Logica bought market share in France and the Nordics, but as Mr Green admitted, the group failed to integrate “beyond the initial effort”. To enable his plan, which is seen as a blueprint rather than a strategy, Logica will spend £110m over the next two years, resulting in £80m of cost savings by 2010. If it is successful, ‘One Logica’ will emerge – defined as a more joined up IT services organisation across Europe, rather than one disproportionately focussing on local plans. “The focus on growth for example is no-brainer; Logica needs growth, particularly in two key European markets, UK Commercial and Germany, and it has to become more proactive and more sales-led if it's going to achieve that,” said analysts at Ovum. “Having got the diagnosis largely right, what Green has unveiled is more of a plan than a strategy: it's about execution not vision, it's largely a continuation of the existing direction rather than anything radically new.” The analyst said a “sense of renewed vision and strategy” to take Logica out of its recent troubles, notably contract delays with associated costs of £15m, are missing from the blueprint. “Logica should prioritise its opportunities, decide on its strategic areas of focus and invest in these, not open up even more competitive fronts and distractions,” Ovum advised. The firm said that Mr Green, who joined Logica from BT in January, has shown himself to be a “good analyst - now let's see the vision and focus to take Logica to the next level.” As part of the announcement, Logica pledged to lifts its profit margin by half a percentage point in 2009 and by between half a point and one percentage point in 2010. Apr 24, 2008 Email this article Printer friendly page Previous Page
|
|
 
|
||||||||||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |