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Logica pens €300 million Shell deal

It's a bumper start to 2011 for Logica, with another multi-million pound deal.

Deal

Logica and a partner firm have secured a 300 million (250 million) outsourcing deal with oil and gas giant Shell.

The 10-year agreement will see Logica and FleetCor Technologies deliver Shell's Commercial Fleet fuel cards programme across Europe and Asia.

Logica will takeover the management of Shell's current in-house system and will see through its replacement, with the first pilot expected by April 2012. Full roll-out is expected before the end of 2013.

The cards are designed to help fleet managers keep on top of fuel payments, so funds are not misused and transactions are secure.

The project will span some 35 countries in Europe and Asia.

Craig Boundy, Logica UK's chief executive (CEO), said it had been a good start to the year for his firm, coming off the back of a 157 million outsourcing contract with the Serious Organised Crime Agency.

Furthermore, Logica won the Shell contract after beating off stiff competition from rival outsourcing firm Accenture something Boundy was particularly pleased with.

"We've been slowly but surely publishing a number of good wins that we've had in the area," Boundy told IT PRO.

"Clients are interested in buying things you design, build and operate for them, and they want the outsourcing as part of that."

He disagreed that outsourcing could help bring about the end of the in-house IT department as it is known today.

However, he said outsourcing had changed the makeup of the corporate IT department.

"Sure, internal IT departments have changed in size, but they've also changed in role and strategic significance," he added.

"Now with their strategic significance their business is increasing, as technology becomes a core part of every organisation."

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