LogicaCMG
Encyclopedia
Logica is a global IT
and management consultancy
company headquartered in Reading
, United Kingdom
.
It has a primary listing on the London Stock Exchange
and is a constituent of the FTSE 250 Index
. It has a secondary listing on Euronext Amsterdam
.
in 1971 and the design of the SWIFT
network for international money transfers in 1973.
In 1974, Logica, together with the French company SESA , set up a joint venture, Sesa-Logica, to undertake the European Informatics Network development. This project, undertaken with the support of partners throughout Europe and with the assistance of Bolt, Beranek and Newman in Cambridge, Massachusetts, brought the core datagram
technology of the Arpanet
, now the Internet
, to Europe for the first time, and established a network linking research centres in a number of European Countries, including CERN
, the French research centre INRIA and the UK’s National Physical Laboratory.
In 1975, Logica developed the first electronic typing pool – Unicom – for Unilever
. This development allowed the complete functions of a typing pool to be automated into a single system supporting about 50 workstations. With the support of the UK’s National Enterprise Board
the company established a new subsidiary to exploit this technology, Logica VTS. A range of stand alone word processors, the VTS 100 and the VTS 2200, were developed and were manufactured at a purpose built factory in Swindon
. These machines were sold internationally by BT
and by International Computers Ltd and were amongst the first word processors to achieve mass sales. However the advent of the Personal Computer
and software such as Microsoft Word
led to the decline of this business and its ultimate closure.
At this time Logica set up operating subsidiaries in the Netherlands
, Australia
, Sweden
, the United States
and elsewhere as well as joint ventures in Hong Kong
with Jardine Matheson, in Italy
with Finsiel and in the UK
with British Airways
. The Company floated on the London Stock Exchange on 26 October 1983.
In 1984 the Company developed the automated clearing system for the UK banks (CHAPS
) as well as the customer service system for British Telecom.
The Company pioneered the automated ticketing system for London Underground
in 1987 and the system which randomly generates premium bond
numbers (ERNIE) in 1988.
During the late 1980s and early 1990s the Company was led by David Mann.
Dr Martin Read was recruited from GEC Marconi and appointed CEO in August 1993. All the executive directors left the company during the two years following his appointment - David Mann, Colin Rowland Andrew Karney
, Ian Macleod and Cliff Preddy. In 2001 the Company secured an outsourcing
contract to create and operate a new case management system for the Crown Prosecution Service
. At this time the level of Dr Read's remuneration received attention when it was revealed that he enjoyed a £28 million pay packet.
(40%), on 30 December 2002, represented the union of an established technology firm (Logica) with an established consulting firm (CMG). In December 2003 LogicaCMG’s software controlled the Beagle 2
probe after separation from the Mars Express
orbiter.
In 2005 LogicaCMG purchased 60% of the Portuguese
company Edinfor, and in March 2008 purchased the remaining 40%. In 2006, LogicaCMG purchased the French
company Unilog and the Swedish
company WM-data
.
The Company suffered some embarrassment in 2006 when laptop
s containing police payroll data were stolen from LogicaCMG and an outsourcing contract with Transport for London
for IT
services was terminated early after disputes over payments and service level agreements.
On 20 February 2007 LogicaCMG Telecom Products was sold for £265m (US $525m) to private investors Atlantic Bridge Ventures and Access Industries and became known as Acision
.
Following a profit warning in 2007, Andy Green was recruited as the new CEO and took office from 1 January 2008. On 27 February 2008, the Company changed its name back to Logica. In April 2008 Green announced a major restructuring programme for the company, leading to 1,300 job losses. Also in May 2008 the Company announced that it would offshore more of its activities including SAP
support and HR
and payroll administration to Makati City
in the Philippines
and has seen a subsequent increase in its outsourced HR and payroll services business to more than 850 customer organisations.
, outsourcing
and IT
services and solutions company. Its activities include:
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
and management consultancy
Management consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
company headquartered in Reading
Reading, Berkshire
Reading is a large town and unitary authority area in England. It is located in the Thames Valley at the confluence of the River Thames and River Kennet, and on both the Great Western Main Line railway and the M4 motorway, some west of London....
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
It has a primary listing on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
. It has a secondary listing on Euronext Amsterdam
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
.
20th century
Logica was founded by Len Taylor, Philip Hughes and Pat Coen as a systems integration business in 1969. Early projects included the control system for the natural gas grid in the UKUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
in 1971 and the design of the SWIFT
Swift
The swifts are a family, Apodidae, of highly aerial birds. They are superficially similar to swallows, but are actually not closely related to passerine species at all; swifts are in the separate order Apodiformes, which they share with hummingbirds...
network for international money transfers in 1973.
In 1974, Logica, together with the French company SESA , set up a joint venture, Sesa-Logica, to undertake the European Informatics Network development. This project, undertaken with the support of partners throughout Europe and with the assistance of Bolt, Beranek and Newman in Cambridge, Massachusetts, brought the core datagram
Datagram
A datagram is a basic transfer unit associated with a packet-switched network in which the delivery, arrival time, and order are not guaranteed....
technology of the Arpanet
ARPANET
The Advanced Research Projects Agency Network , was the world's first operational packet switching network and the core network of a set that came to compose the global Internet...
, now the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, to Europe for the first time, and established a network linking research centres in a number of European Countries, including CERN
CERN
The European Organization for Nuclear Research , known as CERN , is an international organization whose purpose is to operate the world's largest particle physics laboratory, which is situated in the northwest suburbs of Geneva on the Franco–Swiss border...
, the French research centre INRIA and the UK’s National Physical Laboratory.
In 1975, Logica developed the first electronic typing pool – Unicom – for Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....
. This development allowed the complete functions of a typing pool to be automated into a single system supporting about 50 workstations. With the support of the UK’s National Enterprise Board
National Enterprise Board
-History:The National Enterprise Board was set up in the United Kingdom in 1975 to implement the Wilson Labour government's objective of extending public ownership of industry...
the company established a new subsidiary to exploit this technology, Logica VTS. A range of stand alone word processors, the VTS 100 and the VTS 2200, were developed and were manufactured at a purpose built factory in Swindon
Swindon
Swindon is a large town within the borough of Swindon and ceremonial county of Wiltshire, in South West England. It is midway between Bristol, west and Reading, east. London is east...
. These machines were sold internationally by BT
BT Group
BT Group plc is a global telecommunications services company headquartered in London, United Kingdom. It is one of the largest telecommunications services companies in the world and has operations in more than 170 countries. Through its BT Global Services division it is a major supplier of...
and by International Computers Ltd and were amongst the first word processors to achieve mass sales. However the advent of the Personal Computer
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
and software such as Microsoft Word
Microsoft Word
Microsoft Word is a word processor designed by Microsoft. It was first released in 1983 under the name Multi-Tool Word for Xenix systems. Subsequent versions were later written for several other platforms including IBM PCs running DOS , the Apple Macintosh , the AT&T Unix PC , Atari ST , SCO UNIX,...
led to the decline of this business and its ultimate closure.
At this time Logica set up operating subsidiaries in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and elsewhere as well as joint ventures in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
with Jardine Matheson, in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
with Finsiel and in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
with British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
. The Company floated on the London Stock Exchange on 26 October 1983.
In 1984 the Company developed the automated clearing system for the UK banks (CHAPS
CHAPS
The Clearing House Automated Payment System or CHAPS is a British company established in London in 1984, which offers same-day sterling fund transfers...
) as well as the customer service system for British Telecom.
The Company pioneered the automated ticketing system for London Underground
London Underground
The London Underground is a rapid transit system serving a large part of Greater London and some parts of Buckinghamshire, Hertfordshire and Essex in England...
in 1987 and the system which randomly generates premium bond
Premium Bond
A Premium Bond is a lottery bond issued by the United Kingdom government's National Savings and Investments scheme. The government promises to buy back the bond, on request, for its original price. They were introduced by Harold Macmillan in his 1956 budget....
numbers (ERNIE) in 1988.
During the late 1980s and early 1990s the Company was led by David Mann.
Dr Martin Read was recruited from GEC Marconi and appointed CEO in August 1993. All the executive directors left the company during the two years following his appointment - David Mann, Colin Rowland Andrew Karney
Andrew Karney
Andrew Karney, FIET, FRSA is a British electrical engineer, businessman and company director. He is chairman of the board for the international NGO, Tiri.-Career:...
, Ian Macleod and Cliff Preddy. In 2001 the Company secured an outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
contract to create and operate a new case management system for the Crown Prosecution Service
Crown Prosecution Service
The Crown Prosecution Service, or CPS, is a non-ministerial department of the Government of the United Kingdom responsible for public prosecutions of people charged with criminal offences in England and Wales. Its role is similar to that of the longer-established Crown Office in Scotland, and the...
. At this time the level of Dr Read's remuneration received attention when it was revealed that he enjoyed a £28 million pay packet.
21st century
The merger of Logica (60%) with CMGCMG (company)
CMG was a consulting company focused on telecommunications and computing and based in London, United Kingdom. It was once a constituent of the FTSE 100 Index but was acquired by Logica in 2002.-History:...
(40%), on 30 December 2002, represented the union of an established technology firm (Logica) with an established consulting firm (CMG). In December 2003 LogicaCMG’s software controlled the Beagle 2
Beagle 2
Beagle 2 was an unsuccessful British landing spacecraft that formed part of the European Space Agency's 2003 Mars Express mission. All contact with it was lost upon its separation from the Mars Express six days before its scheduled entry into the atmosphere...
probe after separation from the Mars Express
Mars Express
Mars Express is a space exploration mission being conducted by the European Space Agency . The Mars Express mission is exploring the planet Mars, and is the first planetary mission attempted by the agency. "Express" originally referred to the speed and efficiency with which the spacecraft was...
orbiter.
In 2005 LogicaCMG purchased 60% of the Portuguese
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
company Edinfor, and in March 2008 purchased the remaining 40%. In 2006, LogicaCMG purchased the French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
company Unilog and the Swedish
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
company WM-data
WM-data
WM-data was a Swedish IT consultancy company based in Stockholm, and was completely incorporated by Logica on February 27, 2008. The company was quoted on the Stockholm Stock Exchange as a member of the A-list, but after LogicaCMG's acquisition, WM-data was dequoted...
.
The Company suffered some embarrassment in 2006 when laptop
Laptop
A laptop, also called a notebook, is a personal computer for mobile use. A laptop integrates most of the typical components of a desktop computer, including a display, a keyboard, a pointing device and speakers into a single unit...
s containing police payroll data were stolen from LogicaCMG and an outsourcing contract with Transport for London
Transport for London
Transport for London is the local government body responsible for most aspects of the transport system in Greater London in England. Its role is to implement the transport strategy and to manage transport services across London...
for IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
services was terminated early after disputes over payments and service level agreements.
On 20 February 2007 LogicaCMG Telecom Products was sold for £265m (US $525m) to private investors Atlantic Bridge Ventures and Access Industries and became known as Acision
Acision
Acision is a privately held mobile communications network infrastructure company specialising in messaging and charging systems that enable popular services such as Short message service , Multimedia Messaging Service , mobile internet browsing, Mobile Broadband and voicemail.-History:Acision's...
.
Following a profit warning in 2007, Andy Green was recruited as the new CEO and took office from 1 January 2008. On 27 February 2008, the Company changed its name back to Logica. In April 2008 Green announced a major restructuring programme for the company, leading to 1,300 job losses. Also in May 2008 the Company announced that it would offshore more of its activities including SAP
SAP AG
SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...
support and HR
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
and payroll administration to Makati City
Makati City
The City of Makati is one of the 17 cities that make up Metro Manila, one of the most populous metropolitan areas in the world. Makati is the financial center of the Philippines and one of the major financial, commercial and economic hubs in Asia...
in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
and has seen a subsequent increase in its outsourced HR and payroll services business to more than 850 customer organisations.
Operations
Logica is a management consultancyManagement consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
, outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
and IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
services and solutions company. Its activities include:
- Supporting the missions of over 150 orbiting satellites.
- Processing more than $100 billion of salaries globally each year.
- Supporting 300 telecoms operators in 130 countries.