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LogicaCMG to shift shared services operations to India

Vishwanath Kulkarni

Bangalore , Jan. 4

THE India operations of the European IT firm LogicaCMG is set to emerge as the global hub for the company's business process shared services such as finance and accounting (F&A), procurement, HR services and technology help desk.

The company plans to move a significant chunk of the shared services operations of its various subsidiaries to its offshore delivery centre in Bangalore this year, said Mr Rahul Patwardhan, CEO of LogicaCMG India.

The shared services team would be scaled up from the present 150 to around 500 by end-2006, he said. "The idea is to take out the cost base by offering shared services through cost effective delivery," Mr Patwardhan said, adding "2006 will be an important year for India operations as we expect to reach critical mass in terms of headcount".

IT team expansion: LogicaCMG is also expanding its IT services team at a steady pace by adding 150-200 people a month. By end-2005, the company's IT services headcount stood at around 2,000 and the India operations has emerged as its third largest unit, he said.

The company's India operations is handling the F&A and procurement functions for the UK and the Dutch subsidiaries. These subsidiaries are the largest operations of LogicaCMG in terms of headcount with some 6,000 people each.

"We have some 60 people handing the UK operations and plans to add about 15 for the procurement BPO," he said. The company has a separate team to handle the language issues.

"Going forward we will cater to other subsidiaries in Germany, Australia, Poland, France and the US among others," he said.

Even while catering to the subsidiaries of LogicaCMG worldwide, the shared services unit is also targeting the third party business. LogicaCMG operates in some 34 countries.

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