Logica's margin challenge
Publish date: 02/03/2011
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There’s no doubt that 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 is this merely a pipedream?
In this CompanyViews note, we take a deeper look at the challenges facing Logica’s march towards their 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.
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