(, ) is a
London -based
Telecommunications ,
IT and
Military consultancy company. It is quoted on the
London Stock Exchange and
Euronext Amsterdam , and is a member of the
FTSE 250 index of shares. As of 2006, the company is active in 36 countries and nearly has 30,000 employees. In
2003 , it realised a turnover of 1.7 billion ($4.5 Billion)GBP (2.6 billion EUR).
Logica was founded in 1969 by Len Taylor, Philip Hughes and Pat Coen. The company started life as a systems integration business at the same time as the birth of the mini computer. The majority of projects undertaken at that time exploited the flexibility and power of these machines. Important projects included the control systems for the natural gas grids in the UK and the Netherlands, the automated clearing system for the UK banks, the computerization of the new stock exchange in
Hong Kong , and the customer service system for
British Telecom , the control system for the
Eutelsat satellite constellation as well as numerous projects for the
European Space Agency . Logica undertook significant product developments for
IBM . Logica is credited with the development of the
Teletext system for the
BBC .
Logica set up operating subsidiaries in the Netherlands, Australia, Sweden, the United States and elsewhere as well as joint ventures in Hong Kong with
Jardine Matheson and Italy with
Finsiel and one with
British Airways . It now has nearly 30,000 employees operating in 36 countries across the globe.
Total turover of 4 billion euros and at present is no:1 in application management and holds 20th position among all companies in world.
The company was the first software company to be floated on the London Stock Exchange on
26 October 1983 .
Company successes include the strategic partnership with the Crown Prosecution Service known as COMPASS, which has included the development of a modern Case Management System (CMS),
ERNIE - the system which randomly generates premium bond numbers, and the on-board software on the
Huygens mission to Titan.
The Company has made a number of acquisitions in the United States, Germany, Sweden, France and Australia; however none of these has proved to be very successful. The acquisition of Aldiscon in
Ireland brought Logica into the text messaging business which was to prove very lucrative. In 2002 the Company merged with CMG.
The merger of Logica (60%) with
CMG / Admiral (40%), on
December 30 ,
2002 , represented the union of an established technology firm (Logica) with an established consulting firm (CMG). The move was generally considered by commentators at the time to be of good strategic value for both companies. Profit rises since the merger further validate the decision.
LogicaCMG is one of the most prominent IT consulting firms and does not advertise widely, except to fulfill its recruitment goals. The average member of the public cannot afford, say, a £5m electricity trading system, but the clients who need their services know who they are and often have had relationships with Logica or CMG that have lasted over 40 years. As a consequence of this relative obscurity, the LogicaCMG marketing literature that does exist lists various 'wow factors' that people may be surprised by:
- LogicaCMG systems supports the missions of over 150 orbiting satellites.
- LogicaCMG solutions handle more than half the world's Foreign Exchange traffic.
- LogicaCMG systems process two out of every three Text Messages sent in the world.
- LogicaCMG has delivered one out of every four multi-media messaging centres installed by wireless service providers across the globe.
- LogicaCMG HR outsourcing services process more than $90 billion of salaries globally each year.
LogicaCMG was also responsible for the software controlling the
Beagle 2 mission.
Two industry teams are competing for the contract to build the
Future Offensive Air System , one led by
BAE Systems and the other by LogicaCMG. The companies that form part of LogicaCMG's team are
Raytheon ,
QinetiQ and
EADS .
LogicaCMG's strategy for success and survival has, for many years, been to be broadly-based by sector. In the 1990s, City analysts were recommending that they pull out of the public sector and concentrate on telecoms. Come the IT slump of 2000, Logica still had its public sector business to fall back on, hence avoiding the worst tribulations of the dotcom slump.
