Logica plc was a multinational IT and management consultancy company headquartered in London and later 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 Euronet packet-switching network, and the Bay Area Rapid Transit in San Francisco. Following the acquisition of 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 providing consulting, systems integration, and IT outsourcing in both the public and private sectors.

Logica was acquired by Canada-based CGI Inc in 2012 and the Logica brand name ceased being used in 2013.

History

Origins

Logica was started as a systems integration business in 1969. The other founders were Pat Coen, Steve Feldman, and John McNeil. Another important figure, David Mann, joined the fledgling outfit a few weeks later. Another involved the first bank cash dispenser in the UK. 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.

Logica set up operating subsidiaries in the Sweden and the United States in 1977.

Logica VTS

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. This development allowed the functions of a typing pool to be automated into a single system supporting about 50 workstations. 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 and by International Computers Ltd, and were amongst the first word processors to achieve mass sales. This aspect of business was still going in 1984, with Logica founder Pat Coen as managing director of Logica VTS.

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.

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. The director of the group was Gordon Kirk. Micro Rapport was also released, for the Zilog Z80.

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. In doing so, Microsoft gave HCR and Logica the rights to do Xenix ports and license Xenix binaries in those territories, which for Logica included all of Europe. 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. Logica's positioning of Xenix included features making it easier to use.

The Software Products Group was acquired by SCO in December 1986; it became a wholly owned subsidiary, the Santa Cruz Operation Limited, and the basis for SCO's UK operation, and then to Watford outside London. Initially supplemented by some engineers who transferred from SCO's headquarters operation in Santa Cruz, California,

Public company and the David Mann era

thumb|right|Logica offices in Amstelveen in the Netherlands

The company floated on the London Stock Exchange on 26 October 1983. 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.

Logica pioneered the automated ticketing system for London Underground in 1987 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. The company's research and development arm was known as Logica Cambridge and located in Cambridge, England.

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. Other original founders of the company were also playing a lesser role at this point. 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.

By 1994 the company had some 3,400 employees.

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.

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.

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 Read's remuneration received attention when it was revealed that he enjoyed a £28 million pay packet.

LogicaCMG

thumb|left|LogicaCMG logo and parking signs at Wales offices, 2006

The merger of Logica (60 percent) with British company CMG (40 percent) to form LogicaCMG on 30 December 2002 united an established technology firm (Logica) with an established consulting firm (CMG).

In December 2003, LogicaCMG’s software controlled the doomed Beagle 2 probe after separation from the Mars Express orbiter.

During the mid-2000s the company embarked on a series of acquisitions of Continental European firms. and an outsourcing contract with Transport for London for IT services was terminated early after disputes over payments and service level agreements.

By 2007, the firm had some 39,000 employees and offices in 36 countries, and was one of Europe's largest IT services and outsourcing firms.

Following a profit warning in 2007, shareholders became increasingly skeptical about the wisdom of the European acquisitions strategy, and Martin Read was forced out as CEO by these shareholders.

Return to Logica

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.

On 27 February 2008, the company changed its name back to Logica. In May 2008 the company announced that it would offshore more of its activities including SAP support and HR and payroll administration to Makati in the Philippines, and saw a subsequent increase in its outsourced HR and payroll services business to more than 850 customer organisations.

Beginning in late 2009, Logica's revenues suffered from the effects of the European debt crisis. Logica's shares fell to half their value from a year prior. 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. The acquisition was completed on 20 August 2012.

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.

Operations

Logica was a management consultancy, outsourcing and IT services and solutions company. Its activities included:

  • 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.

LogiBods

Some Former Logica staff have referred to themselves as a "LogiBod".

During the 1980s and 1990s Logica ran an extensive graduate recruitment programme that resulted in the company having a relatively young workforce.

See also

  • Defence Information Infrastructure

References

  • – CGI
  • www.logica.co.uk – Logica official website – archived May 2012