Logica's BMW win will help offset public sector spending cuts

Logica’s deal with BMW to consolidate disparate security systems that manage access and identity of 200,000 workers, is good news for a company expecting UK public sector revenues to drop.

Suppliers that have large UK public sector businesses have been warning of falls in revenue. Cable & Wireless and Capita are recent examples.

Suppliers were recently invited to a meeting with Minister Francis Maude to discuss how costs can be cut. The government is also expected to ditch or renegotiate some existing contracts.

I wonder how many of the suppliers that are heavily focussed on the public sector can actually win significant business in the private sector. Will they be able to ride out the current period of spending cuts?

There will be opportunities for them in the public sector still. Wherever cost savings are required, IT has a role to play.



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