Logica hit by IT spending slowdown

Logica's profits and sales dropped last year as IT departments cut their spending, but outsourcing demand is on the up and UK sales have increased.

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Logica's profits and sales dropped last year as IT departments cut their spending, but outsourcing demand is on the up and UK sales have increased.

The supplier reported a profit of £272m, a 6% fall, on £3.7bn worth of sales in 2009. This compared to £289m profit on sales of £3.8bn in 2008.

In the UK, Logica made £750m worth of sales in 2009 compared to £710m last year - a 6% increase.

The company made job cuts last year as part of a restructure.

Looking forward to 2010, the company said demand for outsourcing services is strong in the private sector and governments across Europe want to outsource to meet their-cost cutting commitments.

"We continue to see an increase of outsourcing opportunities in our commercial sectors. In the public sector, we continue to see a good pipeline of opportunities across Europe, despite the fact that we expect UK public sector decision-making to slow as we come through 2010," said Logica.

Outsourcing sales increased 9% to £1.38bn, while Logica's consulting and professional services sale fell 10% to £2.3bn.

Logica's revenue by sector   
 Public sector  £1.18bn
 Industry, distribution and transport  £1bn
 Energy and utilities  £650m
 Financial services  £553m
 Telecoms and media  £314m
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