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Logica Wins Airbus Outsourcing Deal Worth Over GBP10 Million

June 14, 2009

LONDON -(Dow Jones)- Anglo-Dutch computer services company Logica PLC (LOG.LN) has won a three-year outsourcing deal worth over GBP10 million to manage Airbus’ IT applications including document management, sharing and archiving, a source familiar with the matter told Dow Jones Newswires Tuesday.

The contract with the European aircraft manufacturer, which is owned by European Aeronautic Defence & Space Co. NV (EAD.FR), will be based around Logica’s blended delivery model which uses part European and part offshore-based services to reduce costs but maintain a local presence.

The services will be split between Hamburg, Toulouse and Logica’s Chennai, India center.

Around a quarter of the contract will take over outsourcing duties from Deutsche Telekom AG’s (DT) T-Systems.

Logica’s Airbus deal follows two recent contract wins of similar size; a five-year deal with Ford Motor Co. (F) announced earlier this month which is understood to be worth just short of GBP10 million, and one with Finnair Oyj (FIA1S.HE) announced in May worth slightly less than the Airbus deal.

Logica competes with European peers Capgemini (CGEMY) and Atos Origin (ATO.FR) to manage the IT systems of companies across its European footprint, utilizing staff in cheaper offshore countries such as India and Morrocco to drive down costs while maintaining a presence in its main European markets.

It said in April it expects first half revenue to be slightly down on last year as consulting and professional services demand falters, and market conditions in the second half will likely remain the same.

Company Web site: www.logica.com

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