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Sarah Underwood reports on the latest news in the consultancy market.
Market News - Part 2 |
Part 1
LogicaCMG ready for more acquisitions
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NEWS SHORTS
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PA Consulting led the
winners parade at this year's MCA Best Management
Practice Awards. PA won the prime platinum
award for its work with Westminster City
Council and also carried off gold trophies
for its work in outsourcing consultancy
and technology exploitation. Other winners
included Edengene as best small firm and
winner of the operational performance category,
RightCoutts for business strategy, Trilogy
for change management, Unisys for electronic
trading and Mercer HR Consulting for human
resources.
ITNET is forecasting
“a step change in revenue growth” following
a year of improvement and investment in
its selected sectors of local and central
government, services and transport. ITNET
reported a 145% rise in 2003 pre-tax profit
to £18 million, on turnover climbing 5%
to £189 million. Local government turnover
rose 8%, with commercial revenue up 3%,
supported by a gain of 22% in transport
turnover and services turnover up 14%.
Atos Origin has made
an early gain from its merger with SchlumbergerSema
through a $200 million, seven-year outsourcing
contract at Standard Chartered Bank. SchlumbergerSema
was bidding for the contract before the
announcement of its acquisition by Atos
Origin, but did not make the bank's shortlist.
After the merger agreement, it was reinstated
and went on to win a contract that will
be staffed by a mixed team of Atos Origin
and former SchlumbergerSema employees.
The BBC has shortlisted
eight bidders for a contract involving a
£2 billion, 10-year IT outsourcing deal
and the purchase of BBC Technology. In the
line-up for the next stage of bidding are
CSC, Fujitsu, EDS, Capita, Accenture, IBM,
LogicaCMG and HP. The BBC intends to reduce
this list to three in April, before awarding
the contract in September and getting started
before the close of the year. As well as
walking away with a £2 billion outsourcing
contract, the winner will take on BBC Technology,
a company founded in March 2001 to provide
products and services for the BBC as well
as other broadcasters, platform and content
owners, and government organisations.
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LogicaCMG closed its first year as a merged company at the
top end of its financial expectations – leading group chief
executive Martin Read to suggest the company is ready for
further acquisitions.
The result of a December 2002 merger, LogicaCMG stayed in
the red for a second year running in 2003, but says it will
return to growth this year. The company’s pre-tax loss for
2003 was £33 million, reducing a loss of £734 million in the
prior year. Revenue was £1.6 billion, down 6.4% from £1.8
billion in 2002.
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Consultants' Advisory 2004
Copyright © 2004 |
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