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LogicaCMG is creating a new Outsourcing Services division, which develops its existing outsourcing model, in response to customer demand across Europe.
Jim McKenna, currently Chief Operating Officer, will lead the creation of the new division. It will become operational in key European geographies from Q1 2008 and will be in place across the whole organisation by 2009.
European customers are increasingly demanding a global delivery model. The new division will take end-to-end responsibility for outsourcing services, ensuring that customers have access to the most efficient and cost effective blend of onshore, nearshore and offshore support. It will provide outsourcing sales and design specialists to all LogicaCMG’s customers via our local organisations. It will accelerate the standardisation of tools and processes and drive efficiencies across the organisation.
This division will incorporate around 9,000 LogicaCMG employees working today in our onshore, nearshore and offshore centres across the globe.
Outsourcing services currently represent around a third of LogicaCMG’s revenue. It is estimated* that, by 2011, a majority of the average corporation’s IT budget will be spent on outsourcing providers. The creation of this new division will allow us to evolve our outsourcing offering to ensure we can be flexible in meeting the differing needs of our customers across Europe.
Our largest offshore centres in India, Morocco and the Philippines today are an important element of delivering outsourcing services to customers and we expect these to continue to grow. We also expect growth in our onshore centres and in nearshore centres like the Czech Republic. This allows us to meet the varying language and cultural needs of our customers.
LogicaCMG’s outsourcing services offering includes applications management, infrastructure management, outsourcing of ERP implementation and testing. The group has developed competency centres which are delivering services today in the areas of: SAP shared services, remote infrastructure management, financial services and telecoms products development, and managed testing.
Commenting on this announcement, Andy Green, CEO, said:
“Our customers are clear. They want LogicaCMG to relate to them locally, while also delivering the best competencies from around the world in the most cost effective and efficient way. Our new Outsourcing Services division will have the scale, tools and methods to offer sales and delivery support to our local organisations so that they can help our customers to succeed.”