Claude, I'd like to take a crack at the question you raised on revenue impacts on web-based applications being used by CGI clients:
Firstly, we shouldn't consider the use of web-based applications as having a considerable negative impact on CGI outsourcing revenue. Most large clients, of which CGI targets, will still continue to want to have control over their applications, whether they be web-based or not. And, incidentally, web-based applications are no more than new applications, running on new machines, linking clients and customers over the net, running in the same data centers they always have used - namely CGI data centers. Most web-based applications for large clients still use the old databases running on the old machines. Most clients are not going to change too much of that in the short or near term, way to expensive and fraught with potential problems.
Secondly, moving to web-based applications can be considered good news for CGI's consulting business. Obviously, CGI consultants will get a fair share of current client application developments.
Thirdly, if you remember, CGI has over $7 Billion in backlog. Given their burn-rate, they have over 5 years of current revenue without bringing in new clients. Obviously, 5 years from now, they will have new clients, with alot of the old clients still around, especially BCE ones. Things can only improve.
Lastly, from a perception perspective, CGI has ALWAYS had a perception issue. But as each of CGI's competitors employ their strategies, and CGI goes about it's business the best way it knows how, guess what? CGI is the largest is Canada, the fourth largest in North America and is about to become a $4 Billion outsourcing and systems integration business. The clients that do not know CGI are missing a good thing. The fact that they would not necessarily phone CGI when they need a new system is not a bad thing for CGI, because CGI is focused, will grow at its own projections and is comfortable with year over year growth of 40 to 50 percent.
All in all, I can live with that.
(Sorry for being so wordy!)
Sili |
