Logica bypassing India, heading to Philippines

Cheaper, further

LogicCMG said yesterday that plans to expand its outsourcing business could include setting up an operation in the Philippines, noting that skilled labour there is even cheaper than in India.

The company said it will also build on its facilities in India, Slovakia and the Czech Republic, The Telegraph reports. Outsourcing is Logica's fastest growing business, and accounts for around 25 per cent of the group's revenue.

Announcing the company's preliminary half year results yesterday, chief executive Martin Read said he was thinking of moving application management and software development to the Philippines.

"It's lower cost than India and there are very good people," he said.

Representatives from the Philippines were in the UK in early August to persuade businesses of the benefits of offshoring IT work to the country. ®