MCN Direct Newswire

Previous Issue: Vol. 7 No. 3, 17 March 2008

This issue is sponsored by:

NCC and The UK Consulting Industry Report 2006/7

This issue news

1. Mouchel acquires Hedra for £50m
2. Logica wins in Wiltshire
3. ADL chooses UK managing director
4. Capgemini makes positive progress
5. EDS hires Logica outsourcing chief
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. MOUCHEL ACQUIRES HEDRA FOR £50m

Public services consultancy Hedra has been bought by Mouchel, a UK consulting and business services group which plans to move from an engineering focus to become a multi-disciplinary consulting group.

Chaired by ex-PricewaterhouseCoopers UK consulting head Lynton Barker, Hedra has 210 staff and a turnover of £47.5 million. Mouchel has over 11,000 employees and £450 million turnover.

Hedra will be integrated with Mouchel's management consultancy business, boosting its headcount to nearly 500. The consultancy unit will be led by Hedra chief executive Mark Campbell, who will sit on Mouchel's group board. Barker will also join Mouchel in a strategic role.

Commenting on the deal, which will be settled in cash and shares, Mouchel chief executive Richard Cuthbert said: "The acquisition gives scale and breadth to Mouchel's position in the public sector. By merging Hedra with our existing management consultancy and project management practice, we move directly into the premier league in this area and strengthen our inhouse capacity to deliver and transform single and multi-service outsourced contracts."

2. LOGICA WINS IN WILTSHIRE

Logica has kicked off fiscal 2008 with a seven-year contract to transform IT services at Wiltshire County Council and establish a shared services centre that will support a unitary authority when the county's five councils merge in April 2009.

Under the terms of the £12 million contract, Logica will implement and host an SAP ERP solution to improve the delivery of applications and processes for finance, procurement, HR, payroll services and performance management. The aim of the system is to help the council save up to £11 million a year.

The contract is one of Logica's early wins following the integration and rebranding of LogicaCMG, Unilog, Edinfor and WM-data under a single brand. It also falls into a new financial year that will be driven by Logica CEO Andy Green, who joined the company on 1 January.

Logica's results for 2007 show pre-tax profit down 28% at £84.1 million, on revenue up 3% at £3.1 billion, leading Green to comment: "Everyone at Logica understands the need to improve on our 2007 performance. We are committed to delivering value to shareholders and customers alike.

"In my first few weeks, I have heard from our customers that they see us as open, flexible and local. The launch of the Logica brand creates a real opportunity to add to these strengths, with innovative services from across the group backed by best-in-class blended delivery from around the world. We will set out how we expect this to create value for our shareholders by the beginning of May."

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3. ADL CHOOSES UK MANAGING DIRECTOR

Arthur D Little has named global telecoms expert Mark Mulcahey as its UK managing director and head of its UK telecoms, IT, media and electronics practice.

The UK consultancy was previously managed by ADL's Scandinavian practice, but will now be led by Mulcahey, reporting to ADL's global CEO Michael Traem

A seasoned management consultant, Mulcahey has developed successful telecoms consultancy businesses in the UK, US and Asia. At ADL he will be responsible for 70 staff based in London and Cambridge, and will work closely with the firm's global network of over 1,000 consultants.

Commenting on Mulcahey's appointment, Traem said: "A firm footing in the UK market is key for any successful management consultancy. ADL's experience and heritage in innovation, sustainability, energy, telecoms and finance is highly regarded in the UK. Mark Mulcahey's strong international leadership experience will ensure the UK business reaches its full potential, taking its place as one of the leading players in the global ADL business."

4. CAPGEMINI MAKES POSITIVE PROGRESS

Capgemini has reported a sound financial performance for 2007 - but has admitted modest progress in its consulting business compared to the growth achieved in its technology, outsourcing and local professional services divisions.

Capgemini's net profit rose 50% in 2007 to €440 million (£338 million), on revenue up 13% to €8.7 billion. It achieved an operating margin of 7.4%, up from 5.8% in the previous year.

The UK and Ireland were its worst performers in terms of revenue growth, showing a gain of just 4% - though the total masks a 10% gain in consulting and technology services. Elsewhere in Europe, the Nordic countries and Southern Europe showed the strongest growth.

In the US, Capgemini has re-established itself after a few difficult years, showing revenue growth of 9% on the back of good performance from outsourcing services and local professional services, as well as gains from acquisitions Kanbay and Software Architects.

Consulting revenue grew 5% - compared to 11% in technology services, 10% in local professional services and 8% in outsourcing - but the company noted an increase in momentum, with consulting growth of 10% in the second half of 2007. Looking forward, Capgemini estimates it will record growth for 2008 between 2% and 5%, and improve its operating margin to 8.5%.

5. EDS HIRES LOGICA OUTSOURCING CHIEF

EDS has named Martin Blackburn, former chief executive of global service delivery at Logica, as general manager of its Europe, Middle East and Africa operation.

Blackburn will join EDS on 1 April, replacing Mike Koehler who has moved on to become EDS executive vice president of global ITO services.

At Logica, Blackburn was responsible for a business division of around 6,500 staff that handled all outsourcing, applications management and offshore service delivery within the Logica group.

Commenting on the appointment, EDS EMEA executive vice president Bill Thomas said: "Martin Blackburn brings to EDS unique experience and insight that will be instrumental in ensuring we continue to deliver a high-quality, consistent service across our client base. In particular, his recent success building a thriving global delivery model, offering clients the right blend of offshore, nearshore and onshore locations, is particularly complementary to EDS' BestShore strategy."

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

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Written by Sarah Underwood. Copyright 2010 PMP (UK) Ltd.

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