Logica’s margin challenge

There’s no doubt that CEO Andy Green’s ambition to move Logica’s ‘adjusted’ operating margin into double digits in the medium term  is a fine and noble cause (see Logica UK yet to claw back share). Indeed, to do so could start to put Logica on a similar footing with Accenture which, at 13-14% margins, is surely the gold standard for a (non-Indian) global IT services pure-play.

But could this merely be a pipedream?

In our latest CompanyViews note, we take a slightly deeper look at the challenges facing Logica’s march towards 'margin Nirvana', and offer some thoughts as to how they might be surmounted – with clear lessons for other players in the pan-European IT services marketplace.

TechMarketView Foundation Service subscribers can download Logica’s margin challenge here. Others can dash off an email to our Puni Rajah (prajah@techmarketview.com) to find out how!

Posted by HotViews Editor at '07:46'