LogicaCMG signs $40M Welsh contract with Thames Water

June 24, 2005
LogicaCMG won a GBP22 million [US$39.9 million], 10-year information technology (IT) outsourcing contract win with Thames Water to support its billing and income services operation with Dwr Cymru Welsh Water...

LONDON, June 23, 2005 (PRNewswire) -- LogicaCMG won a GBP22 million [US$39.9 million], 10-year information technology (IT) outsourcing contract win with Thames Water to support its billing and income services operation with Dwr Cymru Welsh Water.

LogicaCMG will deliver IT services for Thames Water from its new outsourcing center in Waterton near Bridgend, Wales. This win supports the company's ongoing investment strategy in Wales, and Thames Water will join other customers already being serviced from the new Waterton offices including Welsh Water, Britannia Airways, Ofcom and the British Council.

Under terms of the contract, LogicaCMG will deliver applications management, development and support, mainframe and server hosting, data and voice network management services including support for the call centre infrastructure to Thames Water in Wales. This supports its billing and income services arrangement with Welsh Water, which supplies water and sewerage services to 1.2 million households in Wales and some adjoining parts of England.

As part of the deal, LogicaCMG will be implementing cost reduction strategies across the business, to help reduce the total cost of ownership to Thames Water. The first priority for LogicaCMG will be server consolidation and renewal throughout 2005 (the number of servers is expected to half) whilst continuing to support critical business functions such as customer billing.

Julia Cherrett, customer operations director from Thames Water comments; "Our relationship with LogicaCMG was important in our overall bid for the Billing and Income contract with Welsh Water. We have built an excellent working relationship with the LogicaCMG team, and together we have successfully delivered to Welsh Water's needs. LogicaCMG understands both our business needs and those of our clients, and will be key to continuing the efficient running of operations over the coming seven years."

Stuart Brand, client manager for Welsh Water comments; "LogicaCMG believes that Welsh Water's unique outsourcing and partnering strategy, and Thames Water and LogicaCMG's role in that activity, has been a key contributor to Welsh Water's success. This is demonstrated by their leading position on performance among the 10 water and sewerage companies, as ranked by the industry regulator, Ofwat. It is a particularly important win for our Thames Water client team which has worked closely with Thames Water to jointly deliver an end to end service that closely matches the needs and business objectives of the customer."

LogicaCMG (www.logicacmg.com) is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. The group holds a 60% controlling interest in Edinfor S.A., one of the largest IT service providers in Portugal, with additional operations in Spain and Brazil. LogicaCMG employs around 21,000 staff in offices across 34 countries and has more than 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com

Thames Water (www.thames-water.com) provides sewage services to 13 million people and drinking water to eight million people. Its supply area covers 5000 square miles across London and the Thames Valley: from parts of Kent in the east to Gloucestershire in the west. Thames Water looks after 20,000 miles of water mains and 40,000 miles of sewers - enough pipes to run around the world more than twice.

Dwr Cymru Welsh Water (www.dwrcymru.com) is the regulated company that provides water supply and sewerage services to over three million people living and working in Wales and some adjoining areas of England. It has 1.2 million household customers and over 110,000 business customers making it the sixth largest of the 23 regulated water companies in England and Wales.


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