Jim McKenna, currently chief operating officer, will lead the creation of the division during the current quarter. It will become operational across the whole company by 2009.
McKenna himself will be leaving LogicaCMG at the end of the year to pursue other interests, including the chairmanship of networking services firm Azzurri.
LogicaCMG said European customers are increasingly demanding a global delivery model. It said 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 local organisations.
The division will incorporate around 9,000 LogicaCMG employees working today in onshore, nearshore and offshore centres across the world.
Outsourcing services currently represents around a third of LogicaCMG's revenue. "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," said the firm.
Andy Green, LogicaCMG 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."