Logica says sales are up as it continues offshore drive

IT outsourcing supplier Logica says sales were up 7% for the third quarter ended 30 September.

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.

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