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LogicaCMG hails IT outsourcing wins

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LogicaCMG today trumpeted some big contracts wins in The Netherlands and France.

In a half-year trading statement today, the company said the IT services market "remains strong", pointing to its success in winning outsourcing deals with ING, the dutch banking group, the Netherlands Workers Insurance Authority, and two - as yet unannounced - "major wins" in France.

A strong market should mean good news for IT contractors, but LogicaCMG is doing its best to fend them off. With a "tightening labour market ... inevitably, there is increased use of contract labour to satisfy demand," the company says. "We are recruiting aggressively in our major markets to ensure we have the right skills at all levels and to reduce the use of subcontractors. We also continue to make greater use of offshore resources".

Group trading for the first half is well ahead of last year and remains in line with the firm's last trading update, issued in May.

The company expresses caution about growth prospects for its telecoms products division, but reports a slight uptick in revenue on last year. It is also notes increased interest in its unified messaging portfolio, particularly in the North American market. ®

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