BT strikes networking deal with LogicaCMG

BT has won a contract to manage IT and business services company LogicaCMG's infrastructure. The financial terms of the seven-year contract were not disclosed.

Under the terms of the agreement, BT will manage LogicaCMG's voice, data, LAN and mobile network infrastructure both for LogicaCMG and also to support the provision of networking services to its customers.

The roll-out of the deal will start in the UK before covering other regions where the company operates. As part of the agreement, LogicaCMG and its customers will be able to benefit from BT's 10bn 21CN network which is being rolled out between now and 2011.

The deal is being touted as mutually beneficial to both companies. BT will get LogicaCMG's expertise in IT application and BPO (business process outsourcing), and in turn it will benefit from BT's networking services capability.

"This agreement really underlines the depth of our expertise and the reach of our network," said Tim Smart, chief executive of BT Global Services UK. "It is also a sign of the growing excitement around 21CN. We have the skills to work with LogicaCMG to meet any network challenge, the geographic footprint to accommodate the company's growth, and - in 21CN - a platform that will allow the company and its customers to take advantage of the networked IT services opportunities that will emerge in the years ahead."

Jim McKenna, chief operating officer at LogicaCMG said that the partnership with BT will provide the expertise and network coverage to meet all its needs.

"Importantly for LogicaCMG, the agreement will also free up specialist resources internally, allowing us to focus on developing new, high-value services for our customers, combining leading IT and infrastructure capabilities," he said.