LogicaCMG said that expansion of its outsourcing business could include setting up operations in the Philippines. Logica noted that skilled labor is more inexpensive in that country as compared to India.

Chief executive Martin Read said he was thinking of moving application management and software development to the Philippines. He said, "It's lower cost than India and there are very good people." The company will also build on its facilities in India, Slovakia and the Czech Republic.

Outsourcing is Logica's fastest growing business with around 25 percent of the group's revenue.

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