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Gold/Mining/Energy : CGI Group (GIB.A) -

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To: NICVIC who wrote (560)	7/23/1998 10:16:00 AM
From: Clive H.	Read Replies (2) of 1673

Hi Frank CGI has been around for a long time. They did not grow out of a Y2K business. I worked for CGI for about 7 years. At that time their main focus was on Systems Integration. In other words they developed custom applications and integrated them with off-the-shelf hardware and software. They competed with other SIs (e.g. Systemhouse,EDS). Systems integration with fixed price contracts can be risky business unless you have tight project management and good contract negotiations. In more recent years CGI started to focus on outsourcing (taking over the computer systems, application development and maintenance, etc.) for large organizations. That is where the real profit lies and with much less risk. CGI have expanded this business area primarily by acquiring a number of successful outsourcing companies. Of course, the alliance with Bell sure has helped (e.g., injection of new capital to invest not to mention projects with Bell). Year 2K projects are certainly not CGI's primary focus. I could be wrong but I expect the revenues from Y2K are pretty small in comparison to their other sources of income. Happy investing Clive

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