Outsourcing Toolkit

Drinks are on LogicaCMG

Will Sturgeon silicon.com

Published: 27 Jun 2006 16:25 BST

LogicaCMG has won a five-year, €70m outsourcing contract from Belgium-based brewery giant InBev to manage all the company's applications across eight European territories.

InBev is the name behind pub favourites such as Bass, Becks, Boddingtons, Staropramen and Stella Artois.

The contract covers Belgium, France, Germany, Ireland, Italy, Luxemburg, the Netherlands and the UK and will see LogicaCMG take on around 70 InBev staff. A spokeswoman for LogicaCMG said no redundancies are planned.

Claudio Garcia, CIO at InBev, said he expects the deal to deliver greater consistency across the territories as well as reducing costs. Analysts predict cost reduction and consistency will go hand in hand with a consolidation of applications in use across InBev.

Jim McKenna, COO of LogicaCMG, said the company's experience in the brewery vertical had been a major factor in it putting together a winning tender.

In a research note today, analyst house Ovum said it imagines the contract will have been "fiercely contested", adding it represents a great win for LogicaCMG.

Ovum said: "The market for standalone application-led outsourcing is much smaller than infrastructure-led outsourcing. With this in mind, a five-year, €70m contract is actually a sizeable deal. LogicaCMG will be celebrating this win — perhaps with a few well-chosen beers."