MCN Direct Newswire

Vol. 6 No. 19, 15 October 2007

This issue is sponsored by:

TeleWare, PMP Research, The UK Consulting Industry Report 2006/7 and PMP Insight Report

This issue news

1. LogicaCMG names Andy Green as CEO
2. Accenture reports record results
3. IBM wins £400m West Country contract
4. Deloitte recruits graduates from China
5. BT snaps up Lynx
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. LOGICACMG NAMES ANDY GREEN AS CEO

LogicaCMG has selected BT executive Andy Green to spearhead the company following last month's departure of CEO Martin Read.

Green will take over from acting chief executive Jim McKenna on 1 January 2008. He joins LogicaCMG from BT Group, where he has been on the board since 2001 and CEO of strategy and operations since April this year. Before that - and playing to the needs of LogicaCMG - he was CEO of BT Global Services.

In this role, Green brought together BT brands such as Syntegra and BT Ignite to create an international IT services operation with 20,000 staff and contracts with large organisations such as the NHS and Unilever. Under his auspices, revenue from the services business doubled to around £9 billion.

LogicaCMG joint deputy chairman David Tyler - who will take over as non-executive chairman when Cor Stutterheim resigns next month - commented: "Andy Green is the ideal person to become CEO of LogicaCMG. He is an experienced and widely respected leader in business services and has helped to create significant value for BT's shareholders over many years. Andy has the strategic vision, operational strength and the international perspective to improve LogicaCMG's business significantly and drive value for shareholders."

The company has been searching for a CEO since May, when Read announced his retirement following shareholder unrest over a trading update. He led the company for 14 years, during which time it developed from a largely UK business with 3,000 staff into an international operation with 40,000 employees across 41 countries.

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2. ACCENTURE REPORTS RECORD RESULTS

Accenture achieved its highest ever revenue, bookings, operating profit and earnings per share in the fiscal year to 31 August, citing strong demand for consulting and claiming that demand remains robust going forward.

Operating profit for the year rose 19% to $2.5 billion (£1.2 billion), on revenue climbing 18% to $19.7 billion. Consulting revenue grew 20% in the year to $11.9 billion, with outsourcing revenue rising 16% to $7.8 billion.

The fourth quarter was particularly rewarding for Accenture, with operating profit up 28% on last year's fourth quarter to $642 million and revenue up 29% to $5.1 billion.

Accenture chairman and CEO William Green commented: "We achieved double-digit revenue growth in US dollars and growth in local currency across all of our operating groups and geographies, leading to our highest quarterly and annual revenues ever."

Looking forward, Accenture expects to maintain momentum on the back of record bookings of $22 billion in fiscal 2007 - 58% for consulting and 42% for outsourcing. The company is forecasting first-quarter fiscal 2008 revenue of between $5.4 billion and $5.6 billion.

3. IBM WINS £400m WEST COUNTRY CONTRACT

IBM has secured a £400 million, 10-year outsourcing contract with Somerset County Council and Taunton Deane Borough Council to create a joint venture company delivering services to local residents.

The Taunton-based joint venture, Southwest One, will be run by staff seconded from both councils and IBM. It will offer a broad range of customer and council services and manage the shared IT infrastructure of the two councils.

The venture is the first of its kind in the South West and is aimed at providing quality services to local communities while increasing efficiencies and reducing the cost of services to council taxpayers.

Jill Shortland, leader of Somerset County Council, explained: "This partnership is absolutely essential to both council organisations in our attempts to inject funding into front-line services in the prevailing climate of huge public and government expectation."

As well as offering services to the two councils, IBM has signed a framework agreement entitling over 30 other public sector organisations to acquire services through the joint venture. Avon and Somerset Constabulary is working towards becoming the first police force in the country to join a shared services arrangement, with a final decision expected next month.

• Capgemini has been named as the preferred bidder to become the IT partner of the Government's Learning and Skills Council for five years from 2008. Under the contract, which is expected to be worth over £200 million and is due to be finalised next month, Capgemini will take responsibility for the council's core business systems and desktop support.

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To find out more about the report, published jointly by the MCA and PMP, please visit http://www.pmp.co.uk/mcareport.asp or email reports@pmp.co.uk or telephone 01494 732830.

The Consulting Industry Report 2006/7 is sponsored by Maconomy.

4. DELOITTE RECRUITS GRADUATES FROM CHINA

Twenty Chinese graduates have arrived in the UK following a recruitment campaign run by Deloitte firms in the UK and China. They will work across the firm's technology assurance and advisory, audit and corporate tax practices.

The campaign is intended to hire 20 graduates a year and is expected to continue with graduates coming not only from China, but also other emerging markets.

Sarah Shillingford, graduate recruitment partner at Deloitte, explained: "Our China recruitment programme allows us to improve the knowledge within the UK firm of Chinese business practices and culture, and vice versa within the Chinese firm of Deloitte."

The initial Chinese contingent will receive the same training and salary as other graduate joiners. They will also be entitled to a paid trip home every year and will complete an accounting qualification. After four years in the UK, they will have the option of returning to work for Deloitte in China.

Luc Lu, one of the graduates on the scheme, said: "The attraction of the programme is working in a well-developed business centre and taking experience back to China where I think it will be extremely valuable. So many people applied for these positions I feel really lucky to have been selected."

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5. BT SNAPS UP LYNX

BT has acquired IT services provider Lynx Technology to strengthen its position in the small and medium-sized enterprise (SME) consultancy market.

BT did not disclose the cost of the acquisition, but noted that Lynx generated revenue of £47 million in the year to September 2006.

Lynx specialises in consulting, technology and outsourcing for SMEs. It is based in Chesterfield, Derbyshire and has over 500 staff.

Bill Murphy, managing director of BT Business, commented: "Lynx Technology is an impressive IT services business, with a proven track record of understanding and meeting the needs of SMEs. Our customers tell us they want to concentrate on 'doing what they do best'. We make that possible by taking care of their entire communications and IT, linking their customers, suppliers and partners to enable communication, collaboration and commerce."

The purchase of Lynx follows BT's August acquisition of another SME specialist, Basilica Computing. Based in Letchworth, Herts, Basilica has over 200 employees, generated revenue of £76 million in 2006 and provides IT design, configuration and implementation services to SME customers.

6. FURTHER INFORMATION - FEEDBACK/PASS ON TO A COLLEAGUE/REMOVE

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Written by Sarah Underwood. Copyright 2012 PMP (UK) Ltd.

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