Feeds

Dixons confirms Logica deal off

Denies redundancies claim

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Dixons has confirmed that it has cancelled plans to outsource its IT support to LogicaCMG, after the two companies were unable to agree on the terms of the deal. It now says it is "reviewing its options" about how to proceed.

In a statement, the company said: "We can confirm that we have ceased negotiations with LogicaCMG regarding the potential outsourcing of our internally facing IS support function. We have been unable to agree terms."

It has denied reports that some IT staff had already been made redundant, saying that the deal was not about redundancies, and some 210 staff would have been transferred to LogicaCMG if the deal had gone ahead. Other reports suggest some staff had already rented out their houses, in anticipation of moving to Bangalore.

Dixons says it does not deal directly with unions, preferring to negotiate with internally created employee forums. A spokeswoman for the company told El Reg that the reaction in the IT department has been "mixed", before adding: "We are doing everything we can to keep people informed".

The deal was officially nixed on Monday, and staff were informed then, the spokeswoman said. CIO Iain Andrews is reported to have left the company, also on Monday. The spokeswoman said he was "reviewing his career options outside the Group", but declined to elaborate on whether the two events were linked.

Dixons told us in May that it was considering outsourcing its IT function, and later confirmed the plans in an interim financial report. However, it said claims that it was negotiating with LogicaCMG were "premature". ®

Related stories

Dixons disses AMD claims
Dixons preps corporate makeover
Dixons to outsource tech support to LogicaCMG

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.