BANGALORE: The growing momentum for IT outsourcing from Europe will see LogicaCMG increasing its headcount at its India operations and adding another 1,000 people in 2006.

The European IT services major, with around 30,000 people on its rolls worldwide, has 2,200 people at its India global services delivery centre (GSDC) and is looking at taking this number to more than 3,000 by the end of 2006.

Seamus Keating, CFO, LogicaCMG, said that its operations have been very successful in India and it has become an important centre for the global delivery of IT services. LogicaCMG has such centres in UK, Eastern Europe and Portugal.

LogicaCMG which started its India operations in 1997 has in its current portfolio IT services, product engineering and BPO. The current expansion plan will see more resources focussed on IT services and BPO segments.

Europe is increasingly seeing a higher traction in terms of outsourcing its IT activity, though on a very measured scale. Keating said the appetite for outsourcing from Europe to India continues to grow and LogicaCMG’s multiple centres enable it to minimise the risk for the corporates who are in the mode of outsourcing. Multiple locations also enable it to provide IT services ranging from onshore, near-shore and offshore, depending on the requirement.

The Indian operations which is the largest single centre for LogicaCMG worldwide is also helping in improving its margins. Keating said, during the second half of 2005, its margins improved even as it increased its headcount in India. LogicaCMG has invested around 25 million pounds (Rs 200 crore) in the Indian operations till now.

Keating said that LogicaCMG, which is currently among top 20 IT services companies globally is looking at entering the top 10 list through a combination of both organic and inorganic growth.