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Logica salvages gov contracts

'Savings', not cuts

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Logica has signed an agreement with the coalition government which should save its existing contracts, although it has agreed to some cuts - or "efficiency savings".

The reseller said the scale of cuts was within forecasts and therefore its targets for the year were unchanged.

Logica said it had been in discussions with Francis Maude and the Cabinet Office since July.

Public sector contracts contributed 12 per cent of Logica's total revenues in 2009. It has contracts with 55 government departments and agencies.

Logica shares are up very slightly on the news. The full statement is here. ®

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