LogicaCMG to expand India operations

With India emerging as a critical component of IT services major LogicaCMG's global operations, the UK-based company has firmed up plans to expand in the country by increasing the headcount and opening new centres outside Bangalore over the next one year.

LogicaCMG, which specialises in systems integration and IT and business process outsourcing (BPO) across diverse markets, has offices in Bangalore, Mumbai and New Delhi. It currently employs around 2,500 staff in two distinct business operations -- Global Services Delivery Centre (GSDC) and the firm's South Asia operations.

"Indian IT sector has shown remarkable growth in the last 10 years. For LogicaCMG, India is not a low cost geography, but an important centre that focuses on very high quality work. We will continue to grow our presence here. By the end of this year, the headcount in India will touch 3,000," LogicaCMG Group Chief Executive Martin Read told Business Standard.

At present, LogicaCMG's Bangalore campus can accommodate 3,500 people. For future growth, the firm will look beyond Bangalore. New emerging IT destinations like Hyderabad, Kolkata and Pune are in focus. "We have not set a deadline to start operations in other cities. But we will definitely consider cities like Hyderabad for our growth," Read said.

According to him, crumbling infrastructure, including road traffic congestion and spiralling real estate prices, may prevent LogicaCMG from expanding its footprint in Bangalore.

The expanded staff base will support the firm's GSDC activities as well as its business plans in the financial services and telecom sectors in India. The GSDC in India provides applications management and development, software product engineering, infrastructure management, BPO, managed tested services and helpdesk services.

Quoting a recent study, Read pointed out that 60 per cent of the work (across multiple verticals) from European countries can be implemented at offshore centres. "However, at present, only 10 per cent of that work is being carried in offshore centres. We see tremendous potential for growth over the next one decade," he added.

Read said LogicaCMG is eyeing the local Indian market for growth. "Indian economy is growing at a very healthy rate, an encouraging sign for us. As more and more Indian companies grow and expand, IT operations will assume critical roles. We will involve ourselves in the process. We are committed to grow our presence in India," he stated.

Some of LogicaCMG's products are also designed, developed and implemented by the staff at Bangalore. They include retail banking, payment solutions and wireless telecommunications payments. Now, the product range is being expanded to include products from other sectors such as transport, energy and utilities.