LogicaCMG cuts, boosts heads
Sub-contractors down, staffers up
Posted in IT Channel, 23rd January 2007 15:20 GMT
Business whitepaper - Virtualization: the four key cost savings
LogicaCMG issued a bullish full year trading statement this morning that managed to combine satisfaction over the cutting of the use of contractors with concerns about capacity constraints.
Capping off the year to December 31, 2006, the services group said the market remained positive with "a generally improving price environment". Second half operating cash flow was strong, with full year cash conversion in line with expectations.
It cited the dampening effect of "capacity constraints" on revenue growth in a number of key territories in the third quarter. It said headcount improved steadily in the fourth quarter, and now believes it is better positioned for improved growth in the coming year. LogicaCMG warned about skills shortages last year as well.
At the same time, it said it boosted its IT services margin as it extended the use of its global service delivery operation and reduced the use of sub-contractors. ®
Business whitepaper - Virtualization: the four key cost savings
An improved architecture for high-efficiency, high-density data centers
Ten cooling solutions to support high-density server deployment [WP42]
The Business Case for Virtualization
Preventive Maintenance Strategy for Data Centers [WP 124]

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