LogicaCMG faces becoming a bid target if it does not find a strong new chief executive, technology industry analysts have warned.

All eyes will be on the UK- based IT services group tomorrow as the company reports interim results and updates the market on the search for a successor to Martin Read. Mr Read, who led the company for 14 years, stood down in response to investor criticism after a string of profits warnings.

Jim McKenna, chief operating officer, has been appointed as interim chief executive, reporting to chairman Cor Stutterheim, until a permanent replacement is found.

Zygos Partnership, the executive search firm retained to find a chief executive, is understood to have begun conducting the first round of interviews. But an appointment cannot come soon enough, according to one analyst who declined to be named: "Either they find a new CEO or they get bought or broken up."

LogicaCMG, the seventh largest IT services business in Europe, has been struggling in the UK, where it is facing tough price competition, particularly from Indian outsourcing companies.

Mr Read's departure has also uncovered divisions on the board and internal power struggles as top executives vie for the role of chief executive.

Didier Hermann, the head of LogicaCMG's French, German and Swiss businesses, left the board last month following a clash with Mr Mc-Kenna.

It is understood that Mr Hermann was interested in the chief executive position and unwilling to report to Mr McKenna, who is also understood to be interested in making his temporary position permanent.

While Mr Hermann is now understood to be out of the official race for the chief executive role, he is seen as a candidate to lead a potential private equity-backed bid for the business.

Seamus Keating, the company's finance director, is also thought to have thrown his hat in the ring.

Many investors also remain disappointed with the poor share price performance, which is virtually flat compared with its value three years ago.

"We sense that the market thinks a new pair of hands is what's needed," said Michael Donnelly, analyst at Landesbanki.

Meanwhile, the IT services market has been rapidly consolidating this summer. Dutch telecoms group KPN has agreed a deal to buy Getronics, while France's Steria looks set to snap up Xansa.

Consensus estimates for LogicaCMG are for revenues of £1.5bn ($3bn) and adjusted operating profit of £92m.