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Could this make integration difficult? Robert Morgan, director at sourcing consultancy Burnt-Oak Partners told me that Logica has a workforce bonded by a strong culture.
This makes me think about what happened at EDS when HP acquired the company. Lots of people were let go and the core culture of the company which, according to former staff, was to deliver excellent service levels was broken.
HP recently that it would write off $8bn after the business it acquired in 2008 for $13.9bn, was devalued.
According to the Times Logica said: “Regrettably, the integration process, as expected, has identified potential job redundancies in UK-based global functions and UK corporate and back-office functions resulting from the combination of the two businesses,” CGI said.
So could CGI commit a similar error with Logica?