29 November 2002 – Logica plc said Thursday it has secured a five-year contract with Northern Electric worth £30m. The service will provide Northern Electric with the management of its IT infrastructure, and will require transformational outsourcing.

Working in close partnership, the two companies will streamline and consolidate Northern Electric’s IT operations to enable it to drive down IT costs and improve IT efficiency.

Eric Connor, President and CEO of Northern Electric commented: “We need a partner who we can trust to run a highly efficient service and who understood the complex requirements of today’s utility market. Logica has a reputation in the energy and utility sector for delivering business benefits while maintaining flexibility in its service contracts. This is critical to us as our business requirements evolve or as industry changes occur.”

“Additionally, we worked in partnership with Logica to agree to share the risk involved in this initiative. This illustrates its commitment to the success of our IT consolidation and improvement of our business processes.”

The contract will assist Northern Electric in obtaining the full benefits from its merger with Yorkshire Electricity’s distribution business by providing a common IT service across the two companies.

Under the agreement, Logica will provide an integrated IT service, including helpdesk, technical and applications support and desk-top maintenance for over 2000 users. Technical support will be provided from Logica’s Bridgend Service Centre.

Steve Burnett, director of Energy & Utilities at Logica, said: “Northern Electric has a clear business vision and has made an important commitment to support this contract. The scope of this solution for the company necessitates a relationship of trust and a shared mindset. Commitment from across both companies, combined with an innovative style and a high degree of cultural fit, will continue to be key success factors in our relationship.”