Logica have reported a plummet of 80 percent in first quarter results in UK outsourcing compared to last year. Logica’s overall sales remained stationary for the first three months of the financial year at £974 million as global orders fell by 24 percent. The quarterly results could foreshadow a large reduction in annual sales next year.

Logica commented that low UK orders had resulted from two huge deals with the Serious Organised Crime Agency (SOCA) and Shell, and that excluding these deals Logica’s performance had only fell by 5 percent in 2011.

Anthony Miller, co-founder of analyst firm TechMarketView, said: “I see this as an even tougher marketplace for the outsourcing industry than last year. Perhaps even more so from Logica, as to win smaller deals it has to be more price competitive.”