LogicaCMG eyes European expansion (FT)

LogicaCMG, the Anglo-Dutch IT services company, said it was continuing to plan expansion into a fourth European market, as it reported trading was "well ahead" of last year following a series of contract wins.

Martin Read, chief executive, said he was hoping to establish another European stronghold through acquisitions. "If I had a magic wand . . . today we've got three major profit generators - the UK, Netherlands and France - I'd like to have four."

Spain and Germany are among Mr Read's targets but the fragmented state of the latter country's market meant "moving forward in Germany is going to be two or maybe three steps".

Organic growth for the first half of the year should be above last year's 3.4 per cent, Logica said. Recent large contract wins with InBev, the Belgian brewer of Stella Artois lager; ING, the Dutch bank; and two unannounced deals in France are also expected to benefit the second half.

Logica said its UK public sector business was stable "despite the more challenging market" and cost savings in Germany meant it was "increasingly confident" of hitting a profitable run rate in the country by the end of the year.

Mr Read, one of the industry's most prominent voices in warning of a skills shortage in the UK, yesterday said the improvement in market conditions was leading to a war for scarce talent and an increased use of contracting out.

Shares in Logica, which had declined by more than 20 per cent in the past five months, rose 5¼p to 165½p.

Near-Shore Shared Services and BPO Opportunities Grow in Eastern Europe (AMR)

For companies looking for pan-European business process support today, Eastern Europe is the place to be, particularly the more established economies and EU-member states: the Czech Republic, Hungary, Poland, and the Slovak Republic. read the article

Getronics Deal With Kapsch Follows Streamlining Trend (Gartner)

Getronics has sold its operations in Central and Eastern Europe and established a strategic partnership with local provider Kapsch. Such tactics are becoming more common as IT services vendors streamline to remain competitive and focused. read