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Goodbye Logica

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Got to be some tasty savings (and brownfield resale) here.

http://www.bbc.co.uk/news/business-18279030

Logica agrees to be bought by Canadian rival CGI

Logica's website Logica's head office is in Reading

Computer services company Logica has agreed to be bought by Canadian rival CGI Group for £1.7bn.

The news has seen Logica's shares jump 65%, with some analysts suggesting that a rival bidder may come forward.

Logica, which employs 41,000 people around the world, including 5,500 in the UK, saw its profits slump last year as its clients reduced their spending.

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Got to be some tasty savings (and brownfield resale) here.

http://www.bbc.co.uk/news/business-18279030

Logica agrees to be bought by Canadian rival CGI

Logica's website Logica's head office is in Reading

Computer services company Logica has agreed to be bought by Canadian rival CGI Group for £1.7bn.

The news has seen Logica's shares jump 65%, with some analysts suggesting that a rival bidder may come forward.

Logica, which employs 41,000 people around the world, including 5,500 in the UK, saw its profits slump last year as its clients reduced their spending.

Ah, takes me back. My first employers after Uni.

Crap pay, but a good bunch to work for (at least they were back then, 20-odd years ago.)

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Ah, takes me back. My first employers after Uni.

Crap pay, but a good bunch to work for (at least they were back then, 20-odd years ago.)

Hehe. Almost my first employer: I worked for Scicon, in the next road and in the same marketplace. You were definitely the other lot, more so than other sector peers like CapGemini 'cos of the geographic proximity.

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Stock market likes it. CGI and Logica both booming.

well I'd expect the logica shares to like it as they were 65p yesterday and the offer was 105p

But as the current price is 109p perhaps people are expecting another bidder?

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Worked there for a while. It was pretty obvious that their diversification strategies were failing.

It was a joke that you could ask anyone in middle management when they moved from Logica's core business (Space & Defence) because anyone who hadn't worked there simply was never around long enough to ask.

If your core revenue model is heavily dependent on government spending and there's no appetite to diversify to build expertise into areas outside core capability then long term, the business will fail.

Bye Logica. Thanks for coming along. You'll be missed. But not that much.

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Got to be some tasty savings (and brownfield resale) here.

http://www.bbc.co.uk/news/business-18279030

Logica agrees to be bought by Canadian rival CGI

Logica's website Logica's head office is in Reading

Computer services company Logica has agreed to be bought by Canadian rival CGI Group for £1.7bn.

The news has seen Logica's shares jump 65%, with some analysts suggesting that a rival bidder may come forward.

Logica, which employs 41,000 people around the world, including 5,500 in the UK, saw its profits slump last year as its clients reduced their spending.

blimey thats a blast from the past, remember pyramidding shorts down on them from 18 quid to under a fiver during during the tech bust, sema aswell, happy days

Edited by Georgia O'Keeffe

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Over twenty years ago, I graduated during the last real recession in 1990 (dotcom bust in 2000 heavily affected the IT and banking but only for a short while) and back in the 90's Logica refused me a job so I worked for my uni sponsor (there was only a few in those days) which was a major defence contractor. Realising that defence budgets were being slashed I struggled to move over into commercial/finance but CMG gave me a job and an opening into Finance and they were the most enjoyable permanent employer I ever had - operative like a workers cooperative - good bunch of people, great sharesave scheme (several ordinary level guys, not much older, were millionaires on share options), flat structure, and best of all, all salaries were published so if you thought you worked for/with a knob, you could check their salary and then make a point to your boss that maybe your pay should go up. While this was satisfying, I'm not sure it actually worked - it maybe forced general pay down. Then CMG messed up and bought Admiral IT for 1.4bn just before the dotcom crash in 1999 so there were stories of secretaries in Admiral becoming millionaires overnight. It went downhill from there, share price crashed, no new business and I quit to go self employed. The final nail in the coffin was the Logica takeover in 2002 and then a few years later, the name CMG disappeared for ever. Today the Finance sector has had it, all IT jobs have gone to India and I'm thinking about being a gardener or plumber!

But happy old memories of those early days of financial software development in the 90's. I can't see where Logica can go now since IT and business process and totally combined and you cannot market yourself as an IT vendor these days - companies want industry specific solutions at Indian prices.

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But happy old memories of those early days of financial software development in the 90's. I can't see where Logica can go now since IT and business process and totally combined and you cannot market yourself as an IT vendor these days - companies want industry specific solutions at Indian prices.

Oracle, IBM and SAP (to name but three) seem to have some lucrative markets ...

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Oracle, IBM and SAP (to name but three) seem to have some lucrative markets ...

There is a mix of companies here - I mean where is it going as a "bums-on-seat" consultancy with few niche products to sell.

Whereas Oracle, SAP made products for the mass IT markets, they are not a bums on seat consultants (well not in a big way). IBM is interesting as it is both bums on seats and got a large volume product line up.

My point is that bums on seats consultancy is not the same as it used to be so where is Logica and the like going - clients dont want consultants in the UK - may be 1 or 2 but the bulk of work has to be done offshore. this means masses of consultants (like myself) end up on the bench. I would see that Logica would need to lay off lots of its staff and increase its Indian centres. So this is a shift to Indian centred type business lowering its value rather than the higher value lucrative bums on seats consultancy days of old.

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Crikey, I used to be employed by Logica! What a bunch of £

*&%? :huh:

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There is a mix of companies here - I mean where is it going as a "bums-on-seat" consultancy with few niche products to sell.

Whereas Oracle, SAP made products for the mass IT markets, they are not a bums on seat consultants (well not in a big way). IBM is interesting as it is both bums on seats and got a large volume product line up.

My point is that bums on seats consultancy is not the same as it used to be so where is Logica and the like going - clients dont want consultants in the UK - may be 1 or 2 but the bulk of work has to be done offshore. this means masses of consultants (like myself) end up on the bench. I would see that Logica would need to lay off lots of its staff and increase its Indian centres. So this is a shift to Indian centred type business lowering its value rather than the higher value lucrative bums on seats consultancy days of old.

On the contrary, Oracle is huge in consultancy. I believe SAP is too, though I can't speak from personal knowledge there.

The reason I cited those companies is that Oracle and IBM (and I believe SAP) are huge in very similar consultancy markets to Logica's. But they don't share the UK attitude of treating engineers as the lowest of the low apprentices to besuited jobs, so they stand a better chance of retaining competent techie folks on their staff.

Oh, and they pay good money. They paid me well in the UK a little while back, and they pay their Indian engineers on the same scales as equivalent western employees, making them seriously rich by Bangalore standards.

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Over twenty years ago, I graduated during the last real recession in 1990 (dotcom bust in 2000 heavily affected the IT and banking but only for a short while) and back in the 90's Logica refused me a job so I worked for my uni sponsor (there was only a few in those days) which was a major defence contractor. Realising that defence budgets were being slashed I struggled to move over into commercial/finance but CMG gave me a job and an opening into Finance and they were the most enjoyable permanent employer I ever had - operative like a workers cooperative - good bunch of people, great sharesave scheme (several ordinary level guys, not much older, were millionaires on share options), flat structure, and best of all, all salaries were published so if you thought you worked for/with a knob, you could check their salary and then make a point to your boss that maybe your pay should go up. While this was satisfying, I'm not sure it actually worked - it maybe forced general pay down. Then CMG messed up and bought Admiral IT for 1.4bn just before the dotcom crash in 1999 so there were stories of secretaries in Admiral becoming millionaires overnight. It went downhill from there, share price crashed, no new business and I quit to go self employed. The final nail in the coffin was the Logica takeover in 2002 and then a few years later, the name CMG disappeared for ever. Today the Finance sector has had it, all IT jobs have gone to India and I'm thinking about being a gardener or plumber!

But happy old memories of those early days of financial software development in the 90's. I can't see where Logica can go now since IT and business process and totally combined and you cannot market yourself as an IT vendor these days - companies want industry specific solutions at Indian prices.

So, so true. But it will backfire. There may be much mirth and merriment (especially on this board) over the big I.T. boys getting a caning in their share prices, mainly due to the reduced value of the deals, but this will not last forever. Much like the cheap crap imported from China at the expense of quality manufactured goods, it might seem OK on the surface, but in a few years, it will be evident that the type of solutions they are asking for simply can't be delivered at the price they want.

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  • 219 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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