We met with Logica executives on June 23 and 24, 2008, for a general BPO catch-up and to discuss in greater detail the company's turnaround strategy under the new CEO Andy Green.

Overall, we think the non-payroll BPO strategy is rather reactive and defensive, but we like the payroll-centric alliance with Oracle and think this strategy could also drive BPO growth beyond payroll and even position Logica as a leader rather than a follower in some select niches.