U.K.-based business and technology service company Logica is keen on expanding its business in India as many European clients have set up operations in the country. At present, Logica has 12-15 clients in areas such as banking and finance, energy and utilities and telecom sectors. It offers assorted services such as payment, liquidity management solutions, smart metering and telecom services.
In addition, the company offers 24x7 support to over 80 customers across India. While Bangalore and Mumbai support the domestic market, Chennai represents global work.
In an interaction with this correspondent, Logica Chief Executive Officer Andy Green said there were over 4,200 employees in Bangalore and Chennai.
Last year, the headcount grew by 16 per cent. The total staff strength across the globe is 39,000. Out of which 6,000 were in offshore locations and the balance in onshore locations. Nearly 135 clients were supported from offshore. The European market accounted for a major chunk of all work. Nearly 60 per cent of the offshore work came from non-U.K. clients and 40 per cent from the U.K.clients. Though there was growth in every part of the world, faster growth was coming from non-English speaking countries, he said.
Mr. Green said nearly 60 per cent of the revenue was generated from non-U.K and non-U.S. clients (Scandinavia, France, Germany and the Netherlands). Logica was following a blended delivery model (German, Indian, Finnish, the Philippines and Morocco).
Regarding segregation of work, he said 60 per cent was non-English speaking countries (Finland, Sweden, the Netherlands, Germany, France and Portugal) and 10 to 15 per cent of offshore work happened in India, the Philippines and Morocco.
On the challenges in the European market, he said the company had to take a call between the blended delivery model and the offshore model. Generally clients' intimacy would come with culture. As far as European culture was concerned, it wanted data privacy and protection.
Similarly there were cost related issues in the U.S. and Europe. Wage rates were higher in Norway and Germany than in the U.S. But the setback in the U.S. was that people were moving to Europe and a lot of top level American executives did not want to take up lower level jobs.
Similarly, the European market was three to four times more costly than the Indian market.
On the economic slowdown in Europe and its impact on the offshore market, he said the German and Swedish markets were doing well.
The company would enter the high growth market at the right time. There was good business in Brazil and the Middle East, he said.
