IT outsourcing supplier Logica says
sales were up 7% for the third quarter ended 30 September. It
also says it will continue to expand its offshore staffing
operations at the expense of more expensive contractors.
The firm's full year revenue guidance has risen slightly to a
still modest 4% on the back of the third quarter results. Logica
does not post a profit/loss sheet.
The firm said there was an increase to 4,400 staff in offshore
and nearshore centres by the end of September. It also says its
planned 2009 cost savings will be increased to £60m from the
previously planned £50m.
Andy Green, Logica CEO, said, "We are pleased to report another
strong quarter with revenue growth of 7%. In view of our third
quarter performance, we now expect full year revenue growth to be
slightly above 4%.
"Our increased customer focus has resulted in a significant
growth in the volume of opportunities in the pipeline. Although we
are anticipating a tough economic environment in 2009, we continue
to expect the IT services market to grow faster than GDP across
Europe."
He said, "We remain confident that we have the right plan and a
strong team in place to outperform the market. However, in light of
current market uncertainties, we are also taking active steps which
include accelerating our 2009 cost savings to protect our
margins."
Logica has not said how many extra contractors will be axed at
the expense of its expanding offshore operation, or if there will
be any significant staff redundancies in the UK.