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LogicaCMG predicts increased organic growth in 2006
 
 LogicaCMG has issued an
upbeat trading update,
saying that its
performance in 2006 "has
been well ahead of last
year", as it continued
to benefit from the
upsurge in the European
outsourcing market that
emerged last year.
   LogicaCMG reported
organic revenue growth
of 9.7% in the first
quarter, thanks to a
strong performance from
its UK financial
services and industry,
distribution and
transport businesses.
 
  
   
 
 
 
 
 
 and demand for
shorter-term consulting
and project work has
improved.
   The company pointed
to a string of new
contract wins, including
a 10-year, £80m deal
with the UK Ministry of
Defence and a memorandum
of understanding signed
with ING in the
Netherlands worth €200m
over six years. In
France, the company has
signed an outsourcing
contract with Carrefour,
an SAP contract with SFR
and an IT consulting
 
 contract with Carlson
Wagonlit Travel.
   LogicaCMG warned that
it remains "cautious"
about Telecoms Products'
growth prospects in
2006, with
next-generation products
not yet driving strong
overall growth.
   The company's
expectations for 2006
remain unchanged and it
forecasts organic
revenue growth to be
above 2005's 5.3%. It
also expects "some
improvement" over last
year's 7.2% operating
 
 profit margin.
   The assimilation of
Unilog is 'progressing
well' and LogicaCMG said
that it was on course to
realise €19m of cost
savings following the
acquisition.
   Company executives
said that there could be
further acquisitions,
possibly in Iberia or
Scandinavia, in
LogicaCMG's aim to build
up scale.
  
 
    Growth in the
Netherlands "was strong
across all sectors",
while in France, where
LogicaCMG says market
conditions are good,
growth was "in line with
expectations" and
Germany was "stable".
   LogicaCMG said
outsourcing demand
continues, particularly
in financial services,
 
 
IBM is ranked top global outsourcing company
 
 Global hardware and
services firm IBM has
been ranked number one
in The Global
Outsourcing 100, the
first ever ranking of
firms in the fastest
growing segment of the
world economy. The
Global Outsourcing 100
is compiled by The
International
Association of
Outsourcing
Professionals (IAOP), an
advocate for the
outsourcing profession
with a global membership
of almost 250
organisations.
   The 100 firms on the
list represent $68.9bn
in 2005 revenues and
1.03m employees
worldwide who provide
services to firms like
GM, Ford, Citigroup,
Bank of America,
ExxonMobil and Verizon,
 
 representatives of the
Fortune 500 and the
Financial Times 2500.
   Outsourcing revenue
and employment grew by
15% in 2005 among the
G100 companies. The
average outsourcing
company now employs
10,000 people at
production operations in
eight countries and
client-facing operations
in 13.
   The 2006 Global
Outsourcing 100 list
includes companies from
around the world which
provide the full
spectrum of outsourcing
services, including
information technology
and business process
outsourcing, as well as
areas such as facility
services, real estate
and capital asset
management,
manufacturing and
 
 logistics.
   Rankings were the
product of 18 criteria,
including number of
employees, skills and
training of employees,
revenue growth, number
of technical and
business certifications
secured, track record of
the management team and
customer service.
   In addition to
French-owned Sodexho
Alliance and Capgemini,
Indian firms like Wipro
Technologies and GE
spin-off Genpact were
notable among the Top 20
firms.
   The United States
dominates ownership of
the outsourcing industry
with 63 of the G100.
   Following at a
distance is India with
14, the United Kingdom
with six, Canada and
China with four each,
 
 Russia with three and
Singapore, the
Philippines and France
with two each.
   Outsourcing is taking
place in almost every
corner of the globe. The
range of services and
business functions now
outsourced by the
leading companies
extends far beyond IT,
human resources and
procurement to
marketing, food service,
real estate, finance,
travel, accounting,
document management and
a range of other
specialised services.
   Similarly outsourcing
is an effective business
strategy in a wide range
of industries. G100
firms serve clients in
banking, insurance,
manufacturing,
automotive, healthcare,
pharmaceuticals,
 
 utilities, energy,
telecommunications,
retail, consumer
packaged goods and in
the government and
public sectors.
   Rising Start firms,
numbers 66-100 on the
list, represent the best
of emerging companies in
the outsourcing space.
Offshore firms and firms
owned and located in
nations where
outsourcing is delivered
dominate this category.
China and India lead
this category.
  
   The complete Global
100 list is available at
http://www.outsourcingpro
fessional.org/content/23/
152/1197/.
  
 
 
Connolly is chosen for third term as Deloitte CEO
 
 Deloitte in the UK has
re-elected John Connolly
as senior partner and
chief executive for a
third term.
   During the period of
Connolly's leadership,
the firm's revenues and
 
  
   
 
 
 
 
    Connolly has served
as chief executive and
senior partner since
1999 and is also the
chairman of the Global
Management Committee of
Deloitte Touche
Tohmatsu. Deloitte UK
 
 brought forward the
election process for the
senior partner and
Connolly has been
re-elected to serve
until 2011.
   Connolly has spent
his entire professional
 
 career with the firm in
a variety of roles both
in the UK and abroad and
has led the firm during
a period of high growth
and unprecedented change
in the profession.
  
 
 profits have grown by
347% and 500%
respectively.
 
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