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{{Short description|Defunct multinational IT and management consultancy company}} {{Use dmy dates|date=April 2022}} {{Infobox company | name = Logica | type = {{unbulleted list||Private (1969–83)|Public (1983–2012)|Subsidiary (2012–13)}} | logo = Logica Plc.jpg | logo_size = 160px | foundation = 1969 | location = [[Reading, Berkshire|Reading]], [[United Kingdom]] | key_people = Pat Coen (founder)<br>Len Taylor (founder)<br>Philip Hughes (founder)<br>David Mann (CEO, 1987–93)<br>Martin Read (CEO 1993–2007)<br>Andy Green (CEO, 2007–)<br>Serge Godin <small>([[Executive Chairman]])</small><br>George D Schindler <small>([[President (corporate title)|President]] and [[CEO]])</small> | fate = Acquired by [[CGI Group]] in 2012 | defunct = | revenue = [[Pound sterling|£]]3,921 million <small>(2011)</small><ref name=prelims>{{cite web |url=http://online.hemscottir.com/ir/log/ir.jsp?page=news-item&item=931896234094005 |archive-url=https://archive.today/20130126071039/http://online.hemscottir.com/ir/log/ir.jsp?page=news-item&item=931896234094005 |url-status=dead |archive-date=26 January 2013 |title=Preliminary Results 2011 |access-date=11 April 2012 |publisher=Logica }}</ref> | operating_income = £54.5 million <small>(2011)</small><ref name=prelims/> | net_income = £27.2 million <small>(2011)</small><ref name=prelims/> | assets = | equity = | num_employees = 21,000 (2012)<ref>{{cite web|url=https://www.independent.co.uk/student/career-planning/getting-job/az-of-employers-logicacmg-319023.html |title=AZ of Employers: LogicaCMG|work=The Independent|date=12 October 2005 |access-date=29 August 2021}}</ref> | industry = [[IT services]], [[IT consulting]] | services = IT, [[business consulting]] and [[outsourcing]] services | parent = [[CGI Group]] | homepage = [http://www.cgi.com/ www.cgi.com] }} '''Logica plc''' was a [[Multinational corporation|multinational]] [[information technology|IT]] and [[Management consulting|management consultancy]] company headquartered in London and later [[Reading, Berkshire|Reading]], United Kingdom. Founded in 1969, the company had offices in London and in a number of major cities across [[England]], [[Wales]] and [[Scotland]], as well as in other countries around the world. It was responsible for many telecommunications infrastructure projects, such as the design of the [[SWIFT]] network for international money transfers, the [[Packet switching#Euronet|Euronet]] packet-switching network, and the [[Bay Area Rapid Transit]] in San Francisco. Following the acquisition of [[CMG (company)|CMG]] in 2002, the company was known as '''LogicaCMG''' from then until 2008, when it changed its name back to Logica. The company's main business at that point was in providing consulting, systems integration, and IT outsourcing in both the public and private sectors. Logica was acquired by Canada-based [[CGI Group]] in 2012<ref>{{Cite news |last=Garside |first=Juliette |date=2012-05-31 |title=Canada's CGI pays £1.7bn cash for British IT giant Logica |url=https://www.theguardian.com/business/2012/may/31/cgi-cash-deal-logica-canada |access-date=2025-01-17 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref> and the Logica brand name ceased being used in 2013. ==History== ===Origins=== Logica was started as a [[systems integration]] business in 1969.<ref name="hscot-jmcn"/> Its founders were five people who left Scicon, an American computer company that had opened a London-based UK subsidiary and that had then been bought by [[BP]].<ref name="hscot-jmcn"/> Chief among these were Len Taylor, who took the operational helm, and Philip Hughes, who served in the visionary role.<ref name="quest">{{cite news | url=https://www.questia.com/magazine/1G1-16126892/logica-s-new-face | title=Logica's New Face | author-first = Anita | author-last=van de Vliet | magazine=Management Today | date=June 1994 }}</ref><ref name="dir">{{cite book | title=International Directory of Company Histories, Volume 37 | publisher=St James Press | date=2001 | pages=230–33}}</ref> Indeed a later profile would call Hughes "one of the architects of the information age."<ref name="alca"/> The other founders were Pat Coen,<ref name=inde>{{cite news | url=https://www.independent.co.uk/news/business/corporate-profile-the-logica-solution-1132465.html | title=Corporate Profile: The Logica Solution | author-first=Jim | author-last=Levi | newspaper=The Independent | date=15 December 1999}}</ref> Steve Feldman,<ref name="is-stint">{{cite news | url=http://data.synthesis.ie/site_media/trec/FT/FT941-7303.txt | title=People: Mann's long stint at Logica comes to an end | newspaper=Financial Times | date=25 February 1994 | access-date=17 August 2013 | archive-date=17 August 2013 | archive-url=https://archive.today/20130817164548/http://data.synthesis.ie/site_media/trec/FT/FT941-7303.txt | url-status=dead }}</ref> and John McNeil.<ref name="hscot-jmcn">{{cite news | url=http://www.heraldscotland.com/sport/spl/aberdeen/john-mcneil-pioneer-of-the-uk-computer-software-industry-1.70194 | title=John McNeil Pioneer of the UK computer software industry | newspaper=Herald Scotland | date=19 November 2004}}</ref> Another important figure, David Mann, joined the fledgling outfit a few weeks later.<ref name="is-stint"/> ===Early projects and expansion=== [[Image:Newman Street looking north.jpg|thumb|left|Logica's headquarters were at 64, Newman Street, fourth building on the left, in the Fitzrovia section of central London (here seen in 2017)]] The new firm's first major contract came in 1970 for a computerized hotel reservation system that would operate on a nationwide basis and was worth £100,000.<ref name=inde/> Another early project was the control system for the United Kingdom's natural gas grid in 1971.<ref name="quest"/> In its early years the company focused on adapting software to specific customer needs and requirements and advising customers on trends in information technology.<ref name="summ-2007"/> The company was premised on the idea that there was tremendous promise in communications technology and that an international approach was warranted.<ref name="quest"/> Accordingly, Logica's first overseas office, in the Netherlands, was opened in 1973,<ref name="quest"/> the same year that turnover exceeded £1 million for the first time.<ref name=inde/> Overall, Logica played a role in putting into use many of the components that later made the [[Internet]] a large-scale success.<ref name="alca"/> Logica had a major success that gave it visibility when it won the design of the [[SWIFT]] network for international money transfers in 1972–73.<ref name="dir"/><ref name=inde/> The company produced a whole new production, transmission and management system for the BBC in the late 1970s.<ref>{{cite web|url=https://www.bbc.co.uk/news/magazine-20032531|title=Ceefax: The early days|publisher=BBC|date=23 October 2012|access-date=1 August 2020}}</ref> Another involved the first bank cash dispenser in the UK.<ref name="hscot-jmcn"/> The company's staffing levels were around 200 employees in the early years, and their successes at pulling off large-scale and difficult projects garnered them a reputation for technical excellence and able management.<ref name="quest"/> McNeil led the teams that did many of the company's early projects.<ref name="hscot-jmcn"/> He left Logica in 1977 and ended up in a successful career as a novelist and a writer for BBC dramas.<ref name="hscot-jmcn"/> In 1974, Logica, together with the French company SESA, set up a joint venture, Sesa-Logica, to undertake the ''[[Packet switching#Euronet|Euronet]]'' development. The project, with the support of partners throughout Europe and the assistance of [[Bolt, Beranek and Newman]] in Cambridge, Massachusetts, used the [[packet switching]] technology of the [[NPL network]] and [[ARPANET]] and [[X.25]] protocols to form [[virtual circuit]]s. It established a network linking research centres in a number of European countries.<ref>{{cite journal|title=Origins, development and future of the Euronet|date=1977-12-31|publisher=Emeraldinsight.com|doi=10.1108/eb046759|last1=Dunning|first1=A.J.|journal=Program|volume=11|issue=4|pages=145–155}}</ref><ref>{{Cite journal|last=Kerssens|first=Niels|date=2019-12-13|title=Rethinking legacies in internet history: Euronet, lost (inter)networks, EU politics|journal=Internet Histories|volume=4|pages=32–48|doi=10.1080/24701475.2019.1701919|issn=2470-1475|doi-access=free}}</ref> They hired [[Roger Scantlebury]] in 1977 who had worked on the [[European Informatics Network]], a [[datagram]] network linking [[CERN]], the French research centre [[INRIA]] and the UK’s [[National Physical Laboratory (United Kingdom)|National Physical Laboratory]].<ref>{{Cite book|url=https://books.google.com/books?id=3EaeBQAAQBAJ&pg=PA203|title=Communications Standards: State of the Art Report 14:3|first=A. V.|last=Stokes|date=23 May 2014|publisher=Elsevier|isbn=9781483160931 |via=Google Books}}</ref><ref>{{Cite web|url=https://www.computerhistory.org/revolution/networking/19/375/2062|title=EIN (European Informatics Network) - CHM Revolution|website=www.computerhistory.org|access-date=2020-02-05}}</ref> Logica set up operating subsidiaries in the Sweden and the United States in 1977.<ref name=inde/> While there were many other British computer services firms started up during this period, most ended up being bought out by bigger companies or overseas services firms.<ref name="dir"/> As such Logica became the dominant independent UK computer services company.<ref name="dir"/> The firm was involved in the development of the original automatic train control system for San Francisco [[Bay Area Rapid Transit]] (BART) in the late 1970s and early 1980s as part of the original construction of BART.<ref name="ar-1983">{{cite book | url=https://archivesit.org.uk/wp-content/uploads/2019/02/Logica-Annual-Report-1983.pdf | title=Logica Annual Review 1983 | publisher=Logica | date=1983 | pages=12, 13, 18, 32 }}</ref> ===Logica VTS=== [[Image:Blue Posts pub corner Eastcastle Street & Newman Street.jpg|thumb|right|84, Newman Street, first silver-grey building on the left, housed Logica VTS (here seen in 2017)]] In 1975, Logica developed the first electronic [[typing pool]] – Unicom – for [[Unilever]].<ref name=inde/><ref name=CCS-unicom>{{cite journal|url=http://www.cs.man.ac.uk/CCS/res/res19.htm#d|title=The Unicom Project|author-first=Peter |author-last=Hall|journal=Resurrection|issn=0958-7403|issue=19|date=Spring 1998|publisher=[[Computer Conservation Society]]|access-date=2 July 2010}}</ref> This development allowed the functions of a typing pool to be automated into a single system supporting about 50 workstations.<ref name=CCS-unicom/> With the support of the UK's [[National Enterprise Board]], in January 1979 the company established a new subsidiary to exploit this technology, Logica VTS.<ref>{{cite news | url=https://ieeexplore.ieee.org/document/5198142 | title=NEB in office systems venture | magazine=Electronics & Power | date=February 1979 | page=92| doi=10.1049/ep.1979.0069 }}</ref> A range of standalone word processors, the VTS 100, the VTS 2200 ("Whirlwind") and, finally, the VTS 2300 ("Kennet"), were developed and were manufactured at a purpose built factory in [[Swindon]]. These machines were sold internationally by [[BT Group|BT]] and by [[International Computers Ltd]], and were amongst the first word processors to achieve mass sales.<ref name=CCS-unicom/> The advent of the [[personal computer]], and software such as [[WordPerfect]], led to the decline of this business and its ultimate closure.<ref name=CCS-unicom/> In connection with office automation, Logica VTS also engaged in product work related to [[local area networking]], putting out a product called Polynet in 1981 which was based upon the [[Cambridge Ring (computer network)|Cambridge Ring]] idea rather than [[Ethernet]].<ref>{{cite news | url=https://books.google.com/books?id=SvlMGPgi_GAC&pg=PA65 | title=Local Net System Out to Rival Ethernet | author-first=Brad | author-last=Shultz | newspaper=Computerworld | date=23 March 1981 | page=65}}</ref> This aspect of business was still going in 1984,<ref>{{cite news | url=https://books.google.com/books?id=siZ1j_5wdqwC&pg=PA28 | title=Second chance for high-speed communication | magazine=New Scientist | date=15 November 1984 | page=28}}</ref> with Logica founder Pat Coen as managing director of Logica VTS.<ref>{{cite news | url=https://books.google.com/books?id=UMfyArhBmUoC&pg=PA23 | title=Computer rivals see eye to eye | magazine=New Scientist | date=1 July 1982 | page=23}}</ref> By the end of 1985, Logica had decided to exit the office automation business, and Logica VTS was shut down over the course of 1986.<ref name="ar-1986">{{cite book | url=https://archivesit.org.uk/wp-content/uploads/2019/02/Logica-Annual-Report-1986.pdf | title=Logica Annual Review 1986 | publisher=Logica | date=1986 | pages=3, 8 }}</ref> ===Software Products Group, Rapport, and Xenix=== Most of Logica's software products were used only internally, as part of reusing implementation parts of the contracting projects it engaged in.<ref name="ar-1983"/> However, Logica staged a foray into the wider software products world in the early-mid 1980s, creating the Software Products Group.<ref>{{cite journal | url=https://www.sciencedirect.com/science/article/abs/pii/0141933185903187 | title=System V interface definition – a last chance for Unix? | author-first=Bill | author-last=Bateson | author2-first=Geraint | author2-last=Davies | journal=Microprocessors and Microsystems | volume=9 | issue=7 | date=September 1985 | pages=337–339| doi=10.1016/0141-9331(85)90318-7 | url-access=subscription }}</ref> The director of the group was Gordon Kirk.<ref name="mm-1984"/> Logica Rapport was an early [[relational database management system]] that was developed internally in 1977 and began selling as a general product in 1979, with another release in 1980.<ref name="rapport">{{cite news | url=https://books.google.com/books?id=E9upCAAAQBAJ&dq=rapport+database+logica&pg=PA482 | title=Relational Database Systems: Analysis and Comparison | editor-first=Joachim W. | editor-last=Schmidt | editor2-first=Michael L. | editor2-last=Brodie | publisher=Springer | date=1983 | page=482| isbn=9783642688478 }}</ref> Micro Rapport was also released, for the [[Zilog Z80]].<ref name="rapport"/> By 1986, support for Rapport was being phased out by Logica, to the consternation of some organisations using it.<ref name="ns-out">{{cite news | url=https://books.google.com/books?id=TvpZy-gZHnYC&pg=PA17 | title=Software shock for universities | author-first=David | author-last=Holmes | magazine=New Scientist | date=3 April 1986 | page=17}}</ref> [[Xenix]] was a version of the [[Unix operating system]] that [[Microsoft]] worked on; in 1982 they engaged with the [[Santa Cruz Operation]] (SCO) in this work, with the two companies' engineers working together on improvements.<ref name="pate-9ff"/> Microsoft and SCO then further engaged [[Human Computing Resources]] in Canada, and the Software Products Group within Logica in the United Kingdom, as part of making further improvements to Xenix and porting Xenix to other platforms.<ref name="pate-9ff">{{cite book | author-first=Steve D. | author-last=Pate | title=UNIX Internals: A Practical Approach | publisher=Addison Wesley Professional | location=New York | date=1996 | pages=9–11}}</ref> In doing so, Microsoft gave HCR and Logica the rights to do Xenix ports and license Xenix binaries in those territories,<ref name="doug-video">{{cite news | url=https://www.santacruztechbeat.com/2016/04/21/watch-doug-michels-sco/ | title=Watch: A look-back conversation with Doug Michels, co-founder of SCO | author-first=Sara | author-last=Isenberg | newspaper=Santa Cruz Tech Beat | date=21 April 2016}} See around 10:45 mark of interview video.</ref> which for Logica included all of Europe.<ref name="ar-1984"/> This [[second source]] agreement was formalised between Microsoft and Logica in January 1983.<ref name="mm-1984"/> [[Image:SCO offices in Watford England July 1996.jpg|thumb|left|After being acquired by SCO, the Logica Software Products Group subsequently had its offices at the Croxley Centre in Watford]] This Logica group put out several releases, including Xenix 3.0 in 1984, which was based on [[UNIX System III]] for 16-bit processors with some [[Berkeley Software Distribution]] networking functionality and improved compatibility with [[MS-DOS]].<ref name="mm-1984">{{cite news | url=https://kundoc.com/pdf-version-3-gets-xenix-nearer-ms-dos-.html | title=Version 3 gets Xenix nearer MS-DOS | magazine=Microprocessors and Microsystems | page=456}}</ref> Logica stated that it had over 300 clients for its Xenix product, including other computer manufacturers such as [[Acorn Computers]], [[Plessey Microsystems]], [[SAGEM]], [[Regnecentralen]], and [[Triumph-Adler]], indirect sales through resellers, and direct sales to end customers such as [[Chemical Bank]], [[West Midlands County Council]], and [[Natural Environment Research Council]].<ref name="ar-1984">{{cite book | url=https://archivesit.org.uk/wp-content/uploads/2019/02/Logica-Annual-Report-1984.pdf | title=Logica Annual Review 1984 | publisher=Logica | date=1984 | page=12 }}</ref> Logica's positioning of Xenix included features making it easier to use.<ref name="mm-1984"/> However, during 1986, Logica decided to, as it said in its annual review, "withdraw from Xenix operations".<ref name="ar-1987">{{cite book | url=https://archivesit.org.uk/wp-content/uploads/2019/02/Logica-Annual-Report-1987.pdf | title=Logica Annual Review 1987 | publisher=Logica | date=1987 | page=3 }}</ref> The Software Products Group was acquired by SCO in December 1986;<ref>{{cite news | url=https://books.google.com/books?id=gjwEAAAAMBAJ&pg=PA33 | title=Santa Cruz Operation Ltd. to Offer Source for Xenix | magazine=InfoWorld | date=8 December 1986 | page=33}}</ref> it became a wholly owned subsidiary, the Santa Cruz Operation Limited, and the basis for SCO's UK operation,<ref name="scs-acq">{{cite news | url=https://www.newspapers.com/image/71344774/?terms=%22santa%2Bcruz%2Boperation%22%2Blogica | title=Around the county: Software firm announces changes | newspaper=Santa Cruz Sentinel | date=7 December 1986 | page=D-1 | via=Newspapers.com}}</ref><ref name="doug-video"/> with its office subsequently being relocated first to <!-- 18 Noel Street --> [[Soho]]<ref>{{cite news | url=https://books.google.com/books?id=Sj0EAAAAMBAJ&pg=PA38 | title=This is ... | magazine=InfoWorld | date=9 November 1987 | page=38}} Advertisement.</ref> and then to [[Watford]] outside London.<ref>{{cite news <!--| BD https://www.cbronline.com/news/santa_cruz_operation_replaces_8086_operating_system_with_personal_xenix/ --> | title=Santa Cruz Operation Replaces 8086 Operating System with Personal Xenix | work=[[Computergram International]] | publisher=Computer Business Review | date=2 April 1989}}</ref> Initially supplemented by some engineers who transferred from SCO's headquarters operation in [[Santa Cruz, California]],<ref name="scs-acq"/> the ex-Logica group now in Watford became one of the major development sites for SCO and over the next few years did the [[operating system kernel]] development work behind the subsequent [[SCO OpenDesktop]] and [[SCO OpenServer]] product releases,<ref name="pate-9ff"/> as well as later working in networking, security, escalations, and other areas, in addition to being the sales, marketing, and customer engineering hub for SCO's (and later [[Caldera International]]'s) [[EMEA]] region (although most development work in Watford was shut down in 2000).<ref name="sec-10-k">{{cite web |url=https://www.sec.gov/Archives/edgar/data/1102542/000104746903003091/a2101798z10-k.htm |title=Form 10-K: For the fiscal year ended October 31, 2002: Caldera International, Inc. |publisher=Securities and Exchange Commission |date=27 January 2003}}</ref> ===Public company and the David Mann era=== [[Image:Logica Amstelveen Netherlands.jpg|thumb|right|Logica offices in Amstelveen in the Netherlands]] The company floated on the London Stock Exchange on 26 October 1983.<ref name=inde/> The company had 1,000 employees at this time, and they were major shareholders, owning some 40 percent of the firm.<ref name=inde/> However the stock price remained flat during this time, and indeed would for much of the next ten years.<ref name="dir"/> In 1985 they were faced with a [[hostile takeover]] bid by the [[Ross Perot]]-led competitor [[Electronic Data Systems]] (EDS), but they were able to fend it off.<ref name="quest"/> Around this time the UK trade magazine ''[[Computing (magazine)|Computing]]'' named Logica as the "Company of the Decade".<ref name="quest"/> In 1984 the company developed the automated clearing system for the UK banks ([[CHAPS]])<ref name=history>{{cite web|url=http://www.logica.com/history+and+key+milestones/350233679 |title=Logica History |publisher=Logica.com |access-date=2014-06-23}}</ref> as well as the [[Customer Service System]] for British Telecommunications (BT/CSS), the £1bn total implementation, represented largest computer project undertaken in Europe and the largest integrated database in the world.<ref name="auto">{{Cite web|url=http://www.logica.com/history+and+key+milestones/350233679|title=History and key milestones|date=6 October 2008|archive-url=https://web.archive.org/web/20081006154352/http://www.logica.com/history+and+key+milestones/350233679 |archive-date=6 October 2008 }}</ref> Logica pioneered the automated ticketing system for [[London Underground]] in 1987<ref name=history/> and a new version of the system which randomly generates [[Premium Bond]] numbers ([[Electronic Random Number Indicator Equipment|ERNIE]]) in 1988.<ref name=history/> Logica set up joint ventures in Hong Kong with [[Jardine Matheson]] to undertake the real time trading system for the new integrated [[Hong Kong Stock Exchange]] in 1984, in Italy with [[Finsiel]] in 1993,<ref>{{cite news | url=<!--BD https://www.cbronline.com/news/logica_and_finsiel_set_up_italian_joint_venture/ --> |title= Logica and Finsiel Set Up Italian Joint Venture | work=Computergram International | publisher=Computer Business Review | date=9 March 1993}}</ref> and in the UK with [[British Airways]] in 1990 to undertake the development of computer systems for the airline and then sell them to other airlines.<ref>{{cite news|title=British Airways to hold 51% of Speedwing Logica|publisher=Computer Business Review|date=5 August 1990|work=Computergram International|url=<!--BD https://www.cbronline.com/news/british_airways_to_hold_51_of_speedwing_logica/ -->}}</ref> The company's research and development arm was known as Logica Cambridge and located in Cambridge, England.<ref>{{cite news | url=<!--BD https://www.cbronline.com/news/logica_cambridge_pushing_back_the_frontiers_of_human_computer_interaction/ --> | title=Logica Cambridge: Pushing Back the Frontiers of Human-Computer Interaction | work=Computergram International | publisher=Computer Business Review | date=29 September 1988 }}</ref> Logica's competitors in the IT services and contracting realm in general included not just EDS but also [[Andersen Consulting]], [[Cap Gemini Sogeti]], and the [[Sema Group]], as well as in specialty areas (such as banking) [[Hoskyns Group]], [[Admiral Consulting]], and [[Advanced Computer Techniques]].<ref name="quest"/> Near-original employee David Mann became managing director and CEO of the company in 1987.<ref name="is-stint"/> Founder Philip Hughes resigned as chairman of the board of directors in 1990, and left the board entirely in 1995, focusing instead on a completely different career as a very successful [[landscape painter]].<ref name="alca">{{cite book | url=https://books.google.com/books?id=62bakZiNOPgC&dq=logica+len+taylor+philip+hughes&pg=PA132 | title=The New Alchemists | author-first=Charles | author-last=Handy | publisher=Hutchinson | location=London | date=2004 | edition=Paperback | pages=129–134 | isbn=9781446457276 }}</ref> Other original founders of the company were also playing a lesser role at this point.<ref name="inde" /> During the late 1980s and early 1990s the company was led by David Mann.<ref>{{cite web |url=http://www.charteris.com/company/team/directors.aspx#DavidMann |title=Directors and Managers |publisher=Charteris |access-date=2014-06-23 |archive-url=https://web.archive.org/web/20120314093826/http://www.charteris.com/company/team/directors.aspx#DavidMann |archive-date=2012-03-14 |url-status=dead }}</ref> During this period the company's turnover fell flat, and it suffered a loss in 1991, as it struggled with the effects of the [[early 1990s recession]], especially among customers in the financial services industry.<ref name="quest"/><ref name="is-stint"/> There were also problems in the Logica US subsidiary, and changes in the software marketplace.<ref name="quest"/> The company gained a reputation for emphasizing the creation of technically difficult, bespoke solutions, but ones that did not always maximise customer or shareholder value.<ref name="inde" /> Logica was a pioneer in the development of Text messageing systems for Mobiles making their first sale to [[Vodafone]].<ref name="auto"/> By February 1994, Mann was out as CEO.<ref name="is-stint"/> ===Martin Read era=== Martin Read was recruited from [[GEC Marconi]], where he had worked for [[Arnold Weinstock]], and appointed CEO in August 1993.<ref name="inde" /> Most of the executive directors left the company during the two years following his appointment – David Mann, Colin Rowland, [[Andrew Karney]], Ian Macleod and Cliff Preddy.<ref>{{cite web|author=James Bethell |url=https://www.independent.co.uk/news/business/publisher-takes-modest-approach-on-top-pay-1585231.html |title=More directors leave Logica |publisher=Independent.co.uk |date=1995-06-06 |access-date=2014-06-23}}</ref> This was not unexpected; as one of the very few still left, Andrew Given, later said, "As executive directors we knew we were being brave in choosing him, because for most of us it was like turkeys voting for Christmas."<ref name="inde" /> By 1994 the company had some 3,400 employees.<ref name="quest"/> Defence work was still going on within the company, being done both by both Logica plc and by a specific group known as Logica, Defence and Civil Government.<ref>{{cite conference | contribution=Attitudes to Ada—a market survey | author-first=Ian | author-last=Gilchrist | title=SIGAda '99: Proceedings of the 1999 annual ACM SIGAda international conference on Ada | publisher=SIGAda | date=September 1999 | pages=229–242| doi=10.1145/319294.332014 | doi-access=free | isbn=1-58113-127-5 }}</ref> By the close of the 1990s, Logica had seen large-scale growth, with an average annual earnings increase of 35 percent over the previous five years and an increase in the company's market capitalisation from £130 million in August 1993 to £6.1 billion in December 1999.<ref name=inde/> Logica had 8,500 employees and had gained entry into the [[FTSE 100]].<ref name=inde/> Its customers included large governmental organizations and private companies such as [[Ford Motor Company|Ford]], [[Exxon]], [[IBM]], [[Compaq]], [[Vodafone]], [[Reuters]], [[Merrill Lynch]], [[Prudential plc|Prudential]], [[Deutsche Bank]], and [[Diageo]].<ref name=inde/> Read had great ambitions for the company, saying that over the next five years, "I would like to make Logica as famous a brand as IBM.".<ref name=inde/> In 1999 the buyout of the in-house Customer Care and Billing product division took place leading to the founding of the company that would become [[Cerillion]].<ref>{{cite news|url=https://www.proactiveinvestors.co.uk/companies/news/123629/cerillion-plc-billing-software-group-confirms-10mln-aim-float-123629.html |title= Cerillion plc: Billing software group confirms £10mln float|date=14 March 2016|newspaper=Proactive Inveztors|access-date=11 April 2023}}</ref> In 2000, Logica acquired the German computing services business PDV for £370 million, increasing the size of the German workforce by 1,200 in the process.<ref>{{cite web|url=https://www.telegraph.co.uk/finance/4467560/Logica-launches-cash-call-for-463m.html |title=Logica launches cash call for £463m |date=6 October 2000 |publisher=The Telegraph|access-date=19 March 2018}}</ref> In 2001 the company secured an [[outsourcing]] contract to create and operate a new case management system for the [[Crown Prosecution Service]].<ref>[http://www.wda.co.uk/resources/LogicaCMG2.pdf Logica: Global Outsourcing from a Welsh Hub] {{webarchive|url=https://web.archive.org/web/20090304083542/http://www.wda.co.uk/resources/LogicaCMG2.pdf |date=2009-03-04 }}</ref> At this time the level of Read's remuneration received attention when it was revealed that he enjoyed a £28 million pay packet.<ref>{{Cite web|url=https://www.independent.co.uk/news/people/little-man-with-the-beard-and-a-pound28m--pay-packet-667530.html|title=Little man with a beard and a £28m pay packet|website=[[Independent.co.uk]] }}</ref><ref>{{cite web|author=John Cassy |url=https://www.theguardian.com/society/2001/nov/05/16?INTCMP=SRCH |title=Local zeros? |publisher=Guardian |date=2001-11-05 |access-date=2014-06-23}}</ref> ===LogicaCMG=== [[Image:LogicaCMG office parking signs in Wales.jpg|thumb|left|LogicaCMG logo and parking signs at Wales offices, 2006]] The merger of Logica (60 percent) with British company [[CMG (company)|CMG]] (40 percent) to form LogicaCMG on 30 December 2002 united an established technology firm (Logica) with an established consulting firm (CMG).<ref>{{cite web|author=Richard Wray |url=https://www.theguardian.com/media/2002/oct/09/newmedia.citynews |title=Jobs cull logical in Logica / CMG deal |publisher=Guardian |date=2002-10-09 |access-date=2014-06-23}}</ref> In December 2003, LogicaCMG’s software controlled the doomed [[Beagle 2]] probe after separation from the [[Mars Express]] orbiter.<ref>{{cite web|last=Briggs |first=Helen |url=http://news.bbc.co.uk/1/hi/sci/tech/3310441.stm |title=Beagle probe enters crucial phase |work=BBC News |date=2003-12-17 |access-date=2014-06-23}}</ref> During the mid-2000s the company embarked on a series of acquisitions of Continental European firms.<ref name="guard-out"/> In 2005, LogicaCMG purchased 60 percent of the Portuguese company [[Edinfor]]<ref name="history" /> (and in March 2008 purchased the remaining portion). In 2006, LogicaCMG purchased the French company [[Unilog]] for £631 million and the Swedish company [[WM-data]] for £876 million.<ref name="guard-out"/> [[Image:Logica CMG - London.jpg|thumb|right|LogicaCMG offices on Hampstead Road in London, 2007]] The company suffered some embarrassment in 2006 when [[laptop]]s containing police payroll data were stolen from LogicaCMG<ref>{{cite web|url=http://news.bbc.co.uk/1/hi/england/6171468.stm |title=Met police payroll details stolen |work=BBC News |date=2006-11-22 |access-date=2014-06-23}}</ref> and an outsourcing contract with [[Transport for London]] for [[Information technology|IT]] services was terminated early after disputes over payments and service level agreements.<ref>{{cite web|url=http://www.computing.co.uk/computing/news/2173934/tfl-outsourcing-agreement |title=TfL signs temporary outsourcing agreement |publisher=Computing.co.uk |access-date=2014-06-23}}</ref> By 2007, the firm had some 39,000 employees and offices in 36 countries,<ref name="summ-2007">{{cite book | url=https://books.google.com/books?id=_d3giDjcHFAC&dq=logica+consulting+london&pg=PA40 | title=Careers in IT Consulting | publisher=WetFeet | location=Philadelphia | date=2008 | page=39 | isbn=9781582077932 }}</ref> and was one of Europe's largest IT services and outsourcing firms.<ref name="guard-out"/> Its largest locations in terms of employees counts were France, the Netherlands, and the United Kingdom, in that order.<ref name="summ-2007"/> Its most profitable sales regions were the UK, France, the Netherlands, and Scandinavia.<ref name="guard-out"/> 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]].<ref>{{Cite web|url=https://www.easysourceindia.com/payrollservices|title=Payroll Processing Companies in India - Outsourcing and Management Services in Delhi|website=www.easysourceindia.com}}</ref> Following a profit warning in 2007,<ref>{{cite web|url=http://news.bbc.co.uk/1/hi/business/6679751.stm |title=Logica profit warning hits shares |work=BBC News |date=2007-05-22 |access-date=2014-06-23}}</ref> shareholders became increasingly skeptical about the wisdom of the European acquisitions strategy, and Martin Read was forced out as CEO by these shareholders.<ref name="guard-out">{{cite news | url=https://www.theguardian.com/business/2007/may/28/3 | title=Logica chief forced out after profit warning | author-first=Simon | author-last=Bowers | newspaper=The Guardian | location=London | date=28 May 2007}}</ref> ===Return to Logica=== [[Image:Tour D2 le 29 janvier.JPG|thumb|left|Logica building (near right) in the La Défense complex outside of Paris, early 2012]] Andy Green was recruited as the new CEO and took office from 1 January 2008.<ref>{{cite web|url=http://www.computerweekly.com/Articles/2007/10/09/227338/logicacmg-appoints-bts-green-as-new-ceo.htm |title=Logica appoints BT's Green as new CEO |publisher=Computerweekly.com |access-date=2014-06-23}}</ref> On 27 February 2008, the company changed its name back to Logica.<ref name="history" /> Nevertheless news accounts often referred to the company as being Anglo-Dutch.<ref name="LOG-M-00"/> In April 2008 Green announced a major restructuring programme for the company, leading to 1,300 job losses.<ref>{{cite web|url=http://www.computing.co.uk/computing/news/2216575/logica-uk-sales-stall |title=Logica UK sales stall |publisher=Computing.co.uk |access-date=2014-06-23}}</ref> In May 2008 the company announced that it would offshore more of its activities including [[SAP AG|SAP]] support and [[Human resources|HR]] and payroll administration to [[Makati]] in the Philippines,<ref>{{cite web |url=http://newsinfo.inquirer.net/breakingnews/infotech/view/20080506-134855/UKs-Logica-to-outsource-more-work-to-RP |title=UK's Logica to outsource more work to RP |publisher=Newsinfo.inquirer.net |access-date=2014-06-23 |url-status=dead |archive-url=https://web.archive.org/web/20130627165932/http://newsinfo.inquirer.net/breakingnews/infotech/view/20080506-134855/UKs-Logica-to-outsource-more-work-to-RP |archive-date=2013-06-27 }}</ref> and saw a subsequent increase in its outsourced HR and payroll services business to more than 850 customer organisations.<ref>{{cite press release|url=http://www.logica.com/we-are-logica/media-centre/news/2010/logica-wins-hr--payroll-services-contract-for-bank-of-england |title=Logica winds HR payroll services contract for Bank of England |publisher=Logica |access-date=2014-06-23}} Includes figures on scale of HR BPO operations.</ref> Beginning in late 2009, Logica's revenues suffered from the effects of the [[European debt crisis]].<ref name="tgm-2012"/> In December 2011, Logica announced it would cut 1,300 jobs or around 3 percent of the workforce spread across [[Benelux]], the United Kingdom and Sweden, to save 50 to 60 million pounds a year from the second half of 2012.<ref>{{cite news |url=http://www.ft.com/intl/cms/s/2/13460daa-2645-11e1-9ed3-00144feabdc0.html?ftcamp=rss |title=Logica to cut 1,300 jobs on eurozone woes |date=December 14, 2011|newspaper=Financial Times}}</ref> Logica's shares fell to half their value from a year prior.<ref name="tgm-2012"/> Gradually the outsourcing component came to represent some 45 percent of the company's overall business.<ref name="LOG-M-00"/> ===Acquisition by CGI=== [[Image:Logica CMG renamed to CGI.JPG|thumb|right|upright=0.6|The Logica name being replaced by CGI on a building in Bangalore, India, following Logica being acquired]] On 31 May 2012, Canada's [[CGI Group]] agreed to buy Logica in a £1.7 billion cash deal.<ref name="LOG-M-00">{{cite web|url=http://www.channelregister.co.uk/2012/05/31/logica_bought_by_cgi_group_holdings/ |title=CGI Group beds Logica in £1.7bn cash deal |website=The Register |date=2012-05-31 |access-date=2014-06-23}}</ref> The acquisition would give CGI a large presence in Europe for the first time and make it the sixth-largest IT services provider in the world.<ref name="tgm-2012">{{cite news | url=https://www.theglobeandmail.com/globe-investor/cgi-expands-globally-with-28-billion-deal-to-buy-logica/article4219823/ | title=CGI expands globally with $2.8-billion deal to buy Logica | author-first=Bertrand | author-last=Marotte | newspaper=The Globe and Mail | date=2012-05-31 | access-date=2020-04-19}}</ref> The acquisition was completed on 20 August 2012.<ref>{{cite news|url=http://www.businessweek.com/ap/2012-08-20/cgi-group-closes-2-dot-67b-deal-for-uk-based-logica|archive-url=https://web.archive.org/web/20130506090416/http://www.businessweek.com/ap/2012-08-20/cgi-group-closes-2-dot-67b-deal-for-uk-based-logica|url-status=dead|archive-date=6 May 2013|title=CGI Group closes $2.67B deal for UK-based Logica|access-date=20 August 2012|publisher=Bloomberg Businessweek| date=20 August 2012}}</ref> At the time of the acquisition, CGI had some 35,000 employees compared to Logica's 40,000; following elimination of redundancies, around 71,000 employees were in the newly merged company.<ref name="farewell"/> By March 2013, Logica had been fully integrated into CGI and the Logica brand name disappeared from use.<ref name="farewell">{{cite news | url=https://www.computerweekly.com/news/2240179922/Farewell-to-Logica-brand-as-CGI-completes-UK-integration | title=Farewell to Logica brand as CGI completes UK integration | author-first=Karl | author-last=Flinders | magazine=Computer Weekly | date=21 March 2013}}</ref> ==Operations== Logica was a [[Management consulting|management consultancy]], [[outsourcing]] and [[Information technology|IT]] [[service (economics)|services]] and solutions company.<ref>{{cite web|url=http://www.logica.com/business+review/400011431 |title=Business Review |publisher=Logica |access-date=2014-06-23}}</ref> Its activities included: * Supporting the missions of over 150 orbiting satellites.<ref>{{cite web|url=http://www.logica.com/file/7183 |title=Logica Group Overview |publisher=Logica.com |access-date=2014-06-23}}</ref> * Processing more than $100 billion of salaries globally each year.<ref name=years>{{cite web|url=http://www.logica.com/file/5443 |title=40 years of innovation and enterprise |publisher=Logica |access-date=2014-06-23}}</ref> * Supporting 300 telecoms operators in 130 countries.<ref>{{cite web|url=http://www.logica.com/telecoms+and+media/400005008 |title=Telecoms and media |publisher=Logica |access-date=2014-06-23}}</ref> == LogiBods == Some Former Logica staff have referred to themselves as a "LogiBod".<ref>{{cite web|url=http://andywebber.com/cobhampark/|title=Cobham Park|publisher=Andy Webber|access-date=25 April 2020}}</ref> During the 1980s and 1990s Logica ran an extensive graduate recruitment programme that resulted in the company having a relatively young workforce.<ref name="ar-1986"/> There is an independently operated alumni society, run by former employees, to cater for nostalgic needs of LogiBods and help them keep in touch.<ref>{{cite web|url=http://logibod.com |title=Logibods|access-date=9 September 2017}}</ref> ==See also== * [[Defence Information Infrastructure]] ==References== {{Reflist}} ==External links== * {{Official website|http://www.cgi.com/}} – CGI * [https://web.archive.org/web/20120504030540/http://www.logica.co.uk/ www.logica.co.uk – Logica official website] – archived May 2012 {{Authority control}} [[Category:1969 establishments in England]] [[Category:2012 disestablishments in England]] [[Category:2012 mergers and acquisitions]] [[Category:Business services companies of the United Kingdom]] [[Category:Companies based in Reading, Berkshire]] [[Category:Companies based in the City of Westminster]] [[Category:Consulting firms established in 1969]] [[Category:Former defence companies of the United Kingdom]] [[Category:International information technology consulting firms]] [[Category:Software companies disestablished in 2012]] [[Category:Software companies established in 1969]]
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