Logica
503369
223540262
2008-07-04T14:55:39Z
TubularWorld
4759276
Quick-adding category "Companies established in 1969" (using [[WP:HOTCAT|HotCat]])
{{Infobox_Company |
company_name = '''Logica''' |
company_type = [[Public company|Public]] ([[London Stock Exchange|LSE]]:[http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB0005227086GBGBXSET20522708LOG LOG], [[Euronext]]:[http://www.euronext.com/trader/summarizedmarket/0,5372,1732_6834,00.html?selectedMep=2&idInstrument=14463&isinCode=GB0005227086 LOG]) |
company_logo = [[Image:Logica.gif]] |
company_slogan = Releasing your potential |
foundation = [[1969]] (Logica), [[1964]] ([[CMG (company)|CMG]]) |
location = [[United Kingdom|UK]], [[Netherlands]]<br> offices in 36 countries |
key_people = [[David Tyler (businessman)|David Tyler]], Non-Executive Chairman<br> Andy Green, CEO <br> [[Seamus Keating]], Group Finance Director|
num_employees = ~39,000 ([[2008]]) |
revenue = {{profit}} £2.7 billion [[Pound sterling|GBP]] ([[2006]]) |
industry = [[IT Services]], [[Consulting]] |
products = Business consulting, IT and value-added business process outsourcing, systems integration, telecoms products and solutions |
homepage = [http://www.logica.com/ www.logica.com]
}}
'''Logica''' ({{lse|LOG}}, {{Euronext|LOG}}) is a [[UK]]-based global [[information technology|IT]] and [[Management consulting|management consultancy]] company. It is quoted on the [[London Stock Exchange]] and [[Euronext|Euronext Amsterdam]], and is a member of the [[FTSE 250]] index of shares. The company employs 38,740 people across 36 countries. In [[2007]], it realised a turnover of 3 billion GBP (6 billion US$ ; 3.9 billion EUR).
==Overview and history==
Logica was founded in 1969 by Len Taylor, Philip Hughes and Pat Coen with financial support from the US based [[Planning Research Corporation]]. The company started life as a [[systems integration]] business at approximately 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 automated clearing system for the UK banks - CHAPS,
• the design of the [[SWIFT]] network for international money transfers,
• the development of the first foreign exchange trading platform for the [[Chase Manhattan Bank]],
• the control systems for the natural gas grids in the UK and the Netherlands,
• the development of the software for computer-based [[tomography]] for the first body and brain scanners for EMI Medical,
• the electronic ticketing systems for the [[London Underground]] and the [[Bay Area Rapid Transit System]] in San Francisco,
• the computerisation of the new unified stock exchange in [[Hong Kong]],
• the control systems for the [[Eutelsat]] and [[Turksat]] constellations.
• container management and loading systems for the ports in Bremerhaven and [[Hongkong International Terminals Ltd.]],
• numerous projects for the [[European Space Agency]] including, Europe's first meteorological satellite system - Meteosat, the software for the successful [[Giotto Mission]] and [[Huygens probe|Huygens]] mission to Titan.
• [[Electronic Random Number Indicator Equipment|ERNIE]] - the system which randomly generates [[premium bond]] numbers,
• the customer service system for [[British Telecom]],
• development of the [[Teletext]] system for the [[BBC]], which it sold to broadcasters throughout the world,
• significant product developments for [[IBM]] laboratories in both the UK and the United States.
Many of these projects pioneered the use of mission critical and fault tolerant computing. Unlike many of its competitors at the time, the majority of projects were undertaken on a fixed-price basis.
In 1974, Logica, together with the French company SESA (now part of [[Capgemini]]), set up a joint venture, Sesa-Logica, to undertake the [[European Informatics Network]] development. This project, undertaken with the support of partners throughout Europe and with the assistance of [[Bolt, Beranek and Newman]] in Cambridge, Massachusetts, brought the core [[datagram]] technology of the [[Arpanet]] now the [[Internet]] to Europe for the first time, and established a network linking research centres in a number of European Countries, including [[CERN]], the French research centre [[INRIA]] and the UK’s [[National Physical Laboratory]].
In 1975, Logica developed the first electronic typing pool – Unicom – for [[Unilever]]. This developed allowed the complete functions of a typing pool to be automated into a single system supporting about 50 workstations. With the support of the UK’s [[National Enterprise Board]] the company established a new subsidiary to exploit this technology, Logica VTS. A range of stand alone word processors, the VTS 100 and the VTS 2200 were developed within this company and were manufactured at a purpose built factory in [[Swindon]]. These machines were sold internationally by [[BT]] and by [[International Computers Ltd]] and were amongst the first word processors to achieve mass sales. However the advent of the [[Personal Computer]] and software such as [[Microsoft Word]] lead to the decline of this business and its ultimate closure.
At this time 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]]. The company was the first software company to be floated on the London Stock Exchange on [[26 October]] [[1983]].
Following the retirement of the founders, [[David Mann]] was appointed chief executive in 1987. Mann continued to grow the company internationally and established a specialised research and development centre in [[Cambridge]] working on [[artificial intelligence]], [[speech recognition]] and [[custom arrays]]. During the economic recession of the early 1990’s the company’s growth slowed and the normally high profit margin of 12% fell to around 7%. This led to the decision by the non executive directors lead by the non executive chairman [[Paul Bossonet]] to recruit an external chief executive officer. [[Dr Martin Read]] was recruited from [[GEC Marconi]] and appointed CEO in August 1993. His mission was to restore profit growth and to increase shareholder value. One of his first acts was to close the Cambridge research and development centre and to reduce low margin business such as that for the [[European Space Agency]]. Over the subsequent two years all the line executive directors resigned. Read then concentrated on securing large long term outsourcing contracts largely from the public sector and many of Logica's specialist high technology skills were lost. Company projects include the strategic partnership with the [[Crown Prosecution Service]] known as COMPASS, which has included the development of a Case Management System (CMS), a Management Information System (MIS) and Witness Management System (WMS). Read was fortunate that he was able to ride the [[Dot-com bubble|dot-com boom]] and in 2001, he became the UK’s highest paid executive with gross remuneration of 27 million GBP. With the [[Dot-com bubble|dot-com crash]], Logica’s shares fell by 90% from their peak and Read embarked on an ambitious acquisition spree.
However the spate of acquisitions over the past 5 years failed to increase shareholder value, leading to a drop in market capitalisation of more than 50% . Shareholder pressure following several profit warnings resulted in the early departure of Dr Martin Read the CEO at the time of the acquisitions. During Dr Read's 14 year tenure at Logica, the share price rose by 118% (the [[FTSE 100]] rose over the same period by 122%).
It now has over 39,000 employees operating in 36 countries across the globe. Total turnover of 3.9 billion euros and at present is number one in application management and holds 12th position among all companies in the world.{{Fact|date=February 2008}}.
On 27 February 2008, LogicaCMG changed it's name back to Logica
==Mergers and divestments==
The Company has made a number of acquisitions in the United States, Germany, Sweden, France and Australia. The company acquitted Precision Software in the US in 1994 subsequently sold. The acquisition of Irish company [[Aldiscon]] 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 (company)|CMG]] (40%), on [[December 30]], [[2002]], represented the union of an established technology firm (Logica) with an established consulting firm (CMG). In 2005 LogicaCMG purchased 60% of the Portuguese company Edinfor, and in March 2008 purchased the remaining 40%. In 2006, LogicaCMG purchased the French company [[Unilog]] and the Swedish [[WM-data]].
On [[February 20]] [[2007]], LogicaCMG Telecom Products was sold for £265m (US $525m), to private investors Atlantic Bridge Ventures and Access Industries and is now known as [[Acision]]. The company, based in Reading, UK, employs approximately 1,700 people in 22 countries across six continents. Acision continues as the world leader in independent mobile messaging software systems, including its IP [[short message service centre|SMSC]] for mobile operators and service providers.
==Activities==
Logica is a prominent IT consulting firm, but does not advertise widely and is shy of general public attention. As a consequence of this relative obscurity, the Logica marketing literature that does exist lists various 'wow factors' that people may be surprised by:
* Logica systems supports the missions of over 150 orbiting satellites.<ref>http://www.logica.com/file/7183 Logica.com</ref>
* Logica solutions handle more than half the world's [[Foreign exchange market|foreign exchange]] traffic.{{Fact|date=February 2007}}
* Logica systems process two out of every three [[Short message service|text messages]] sent in the world.<ref>http://www.logica.com/file/5443 Logica.com</ref>
* Logica has delivered one out of every four multi-media messaging centres installed by wireless service providers across the globe.<ref>http://www.logica.com/file/5443 Logica.com</ref>
* Logica HR outsourcing services process more than $100 billion of salaries globally each year.<ref>http://www.logica.com/file/5443 Logica.com</ref>
Significant recent events include:
* '''June 2003''' LogicaCMG’s software controlled [[Beagle 2]] probe after separation from the Mars Express orbiter.<ref>http://www.logica.com/corporate/350232601 www.logica.com</ref><ref>http://news.bbc.co.uk/1/hi/sci/tech/3310441.stm www.bbc.co.uk</ref>
* '''22 Nov 2006''' - Laptops containing police payroll data stolen from LogicaCMG <ref>[http://news.zdnet.co.uk/security/0,1000000189,39284814,00.htm Laptops containing police payroll data stolen - ZDNet UK<!-- Bot generated title -->]</ref> <ref>[http://news.bbc.co.uk/1/hi/england/6171468.stm BBC NEWS | England | London | Met police payroll details stolen<!-- Bot generated title -->]</ref>
* '''Dec 2006''' - [[Transport for London]] (TfL) terminate IT outsourcing contract with LogicaCMG after payment disputes and a failure to meet service level agreements.<ref>http://www.theregister.co.uk/2006/12/15/tfl_logicacmg_over/ www.theregister.co.uk</ref><ref>http://today.reuters.com/news/articlebusiness.aspx?type=technology&storyID=nL1570960&imageid=&cap= reuters.com</ref> <ref>[http://www.computing.co.uk/computing/news/2173934/tfl-outsourcing-agreement TfL signs temporary outsourcing agreement - 01 Feb 2007 - Computing<!-- Bot generated title -->]</ref>
* '''20 Feb 2007''' - LogicaCMG sells its telecoms products division<ref>http://www.itweek.co.uk/crn/news/2184016/logicacmg-exits-telecoms-market www.itweek.co.uk</ref><ref>http://news.independent.co.uk/business/news/article2290065.ece news.independent.co.uk</ref>
* '''27 Feb 2008''' - LogicaCMG changes its name to Logica representing a new unified name for the group
* Logica, on [[May 6]], 2008, announced to increase by 3 to 4 times, its [[Makati City]], [[Philippines]] office which employs 240 workers. It provides IT services, ramping up its business process outsourcing (BPO) business, including SAP support and HR/payroll administration.<ref>[http://newsinfo.inquirer.net/breakingnews/infotech/view/20080506-134855/UKs-Logica-to-outsource-more-work-to-RP Inquirer.net, UK’s Logica to outsource more work to RP]</ref>
==External links==
* [http://www.logica.com/ Official website]
==References==
{{Reflist}}
{{AMX companies}}
{{FTSE 250 Index constituents}}
{{IT giants}}
[[Category:Business services companies of the United Kingdom]]
[[Category:Defence companies of the United Kingdom]]
[[Category:Companies of the Netherlands]]
[[Category:Companies based in London]]
[[Category:Companies listed on the London Stock Exchange]]
[[Category:Companies listed on the Euronext exchanges]]
[[Category:International information technology consulting firms]]
[[Category:Multinational companies]]
[[Category:Companies established in 1969]]
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