Logica feels the labour pinch
Raises prices to fuel staffing
Anglo-Dutch firm LogicaCMG is stuggling to find the brains it needs to fulfill IT services demand in the West.
In a statement accompanying its latest financials, it said: "The increased demand is causing some tightening of labour markets in our major geographies with the supply of new graduates in developed economies becoming more limited."
Logica said it had been able to cover the increased cost of staffing through wage increases and subcontracting by putting the squeeze on customers requiring more highly skilled services.
The firm made the comments as it issued its H1 2006 results. Revenue hit £1.243bn, up 39.4 per cent on the same period in 2005. Much of the boost came from the acquisiton of Unilog, however.
Net profit for the six months to 30 June was £10.3m, down on the £23.7m the firm coined a year earlier. Basic earnings per share were £0.007, compared to £0.027 last H1. Shareholders will get a £0.022 dividend in October.
Chief executive Martin Read said: "We recently announced the acquisition of WM-data which will give us a leading position in the Nordics, the fourth largest IT services market in Western Europe. This acquisition will deliver strong returns over the coming years."
Logica last week offered around £882 for Swedish rival WM-data. More from Reuters here. The UK remains Logica's most competetive market, it said.
The full detailed run down from Logica is available here. ®