Tim Gregory faces a number of challenges in his new appointment as UK president of CGI, following the acquisition of Logica in May, claims analyst Anthony Miller.
The new leadership team for Logica’s operations was revealed this week, which has also resulted in current CEO Andy Green having to step down.
Miller, managing partner at analyst firm TechMarketView, claimed that Gregory, who was previously running CGI’s £140 million Europe and Australia business, is taking a “huge leap” by taking responsibility for Logica’s UK business, which is worth over £740 million in revenue.
However, he also claimed that this isn’t Gregory’s only challenge, as his experience at CGI is also “firmly rooted in the financial services sector”.
Miller said: “Logica derives over half (56 percent) of its revenues from the public sector, an area to which it appears that Gregory has had little or no exposure.
“Indeed, financial services is an ‘also-ran’ for Logica UK – it doesn’t rate a separate mention, but is lumped with ‘other sectors’, which represent little over 20 percent of Logica’s UK business.”
Miller added: “But how will Gregory cope with that nice [Cabinet Office minister Francis Maude] Mr Maude chap, I wonder?”
These aren’t the first concerns to be raised following the news of CGI’s takeover of Logica. When the deal, which is worth an estimated £1.7 billion, was announced the analyst community unleashed some grim predictions, claiming that it highlighted the failures of Logica’s management and that CGI will not create a new global business through integrating Logica’s European operations.