Technology group LogicaCMG today said chief executive Martin Read had announced his intention to retire following disappointing trading at the firm.
Logica said in a statement the group had been preparing to select a successor for some time, but "in light of the unsettling speculation following the recent trading update, Mr Read has decided to accelerate his retirement plans".
Mr Read has agreed to remain in the position while the company searches for a suitable replacement.
Last week, the group warned the City that its UK business was suffering amid project over-runs and tough trading conditions in the private sector.
Shares slumped by 13 per cent as the group warned its "disappointing" performance would impact revenues for the current year, overshadowing news of stronger growth in Europe.
Mr Read joined the company in 1993 as chief executive and became group chief executive of LogicaCMG following the merger of Logica and CMG in December 2002. Since then, the firm has grown from a 3,000 person company centred on text messaging technology, to a global IT services provider with 40,000 employees.
Prior to 1993, he was supervisory managing director at the GEC Marconi Radar and Control Systems group of companies. He has also been a non-executive director of British Airways since 2000.