Logica has sold its 50 per cent stake in Finnish payroll outsourcing business Silta Oy, suggesting that the troubled software and outsourcing specialist is finally chugging in the right direction.
The disposal will help it to focus on what it does best – IT and outsourcing, especially in personnel. The news comes a day after Logica announced a joint venture with Finnish insurance company Tapiola, with plans to develop a business that provides IT services to companies within the Tapiola group.
The Silta Oy disposal is, in effect, part of Logica's £132m restructuring effort that began late last year. Its bosses say their restructuring plans are on track, with cost savings of £25m to £35m due by the second half of the current year. Moreover, the troubled Benelux region is set to return to profits in 2012.
However, the group still has more work to do to boost its competitiveness. Its offshore (cheaper) staff still only account for 17.6 per cent of its workforce (up from 13 per cent in 2009). In contrast, 37 per cent of rival Capgemini's workforce is low-cost. Furthermore, Logica's order book for the first quarter is down 24 per cent.
