Wales beats Bangalore for new LogicaCMG service centre

LogicaCMG has chosen Wales over other UK locations and the cheap offshore location of Bangalore as the hub for a multi-million pound expansion of its business process outsourcing (BPO) operations.

The new Waterton facility in Bridgend opens with 220 staff and there are plans to create over 750 jobs by 2007.

The expansion is part of what LogicaCMG calls its "hybrid" approach to outsourcing with a mix of onshore and offshore staff supporting customer operations. Around 115 clients will be supported from the new facility, including the Crown Prosecution Service, Britannia Airways and the British Council.

Waterton will also focus on the BPO side of LogicaCMG's business, handling everything from document management to application support.

Kevin Radley, UK finance director at LogicaCMG, told silicon.com the company had considered other UK sites and cheaper offshore options before deciding to go with Bridgend in Wales, partly because of the financial grants from the Welsh Assembly and support from the Welsh Development Agency.

"But it's not just about cost. We believe we have got the mix right. There is the quality of the workforce and we already have a strong presence in South Wales. There is also quite low attrition, which is good for us," he said.

Peter Hain, Secretary of State for Wales and leader of the House of Commons, said the facility is good news for the Welsh economy.

"LogicaCMG's creation of jobs is a real boost to our employment performance in Wales, with Wales fast becoming a powerful centre for UK business," he said at the opening of the facility today.