Laurentian Bank of Canada and CGI Sign an Agreement Regarding Information Technology Services
MONTREAL, June 4 /CNW/ - Laurentian Bank of Canada and CGI today
announced the signing of an agreement regarding the outsourcing of the
information technology services of the Laurentian Bank and its subsidiaries.
The approximate value of the 10-year agreement is CDN$300 million (US$194
million).
"Entrusting the development and management of our information technology
services to CGI will ensure the continued development of Laurentian Bank's
technological capacity," said Henri-Paul Rousseau, president and chief
executive officer. "In the course of evaluating CGI's offer, we have realized
that their expertise in information technology outsourcing is among the most
advanced in North America. In a fiercely competitive market, we will be able
to maintain our technological lead in association with this partner while
moving forward with our business strategy. We are also pleased that CGI will
offer advantageous employment conditions to the employees who provided the
services at the Laurentian Bank."
"By taking advantage of our highly regarded IT management and development
services, Laurentian Bank will benefit from constant access to the technology
essential to its growth," said Serge Godin, chairman, president and CEO of
CGI. "Our association with the Laurentian Bank will enable us to expand our
presence in the financial services sector as we take on employees with great
expertise in this sector and in information technology. We also intend to
provide useful support to Laurentian Bank in implementing its technology
strategy."
The agreement covers services such as project development, application
maintenance and evolution, production management, operations support, network
management, technology deployment, and technical support and automated banking
machine network. The operations are scheduled to be transferred on mid-June
2001.
In the context of the reform of the banking and financial services
sectors, Laurentian Bank wants to maintain its technological lead, which was
recently recognized by the North American firm Gomez. Technology also gives
the Laurentian Bank the ability to develop value-added products, such as
banking and financial packages and dedicated Web sites, that are tailored to
the needs of the clients of its business lines and subsidiaries.
The Laurentian Bank has taken care to do business with an established
company that provides advantageous working conditions and unmatched career and
personal development opportunities to its employees. CGI meets these
conditions. Nearly 150 persons currently working in information technology
services will be offered positions with CGI. Through its team of information
technology veterans, the Laurentian Bank will continue to oversee all aspects
of systems architecture, technological orientations, information security and
projects and service agreement management.
Laurentian Bank already outsources various activities, including data
processing and operation of its telecommunications network. These outsourcing
agreements will remain in effect.
Founded in 1976, CGI is the fifth largest independent information
technology services firm in North America, based on its headcount of more than
10,000 professionals. CGI's order backlog totals approximately US$5.3 billion
(CDN$8.2 billion) and its revenue run-rate is close to US$1 billion (CDN$1.5
billion). CGI provides end-to-end IT services and business solutions to 2,500
clients in the United States, Canada and more than 20 countries around the
world. CGI's shares are listed on the NYSE (GIB), as well as on the TSE
(GIB.A). They are included in the Toronto Stock Exchange's TSE 300 index as
well as the S&P/TSE Canadian Information Technology index. Web site:
www.cgi.ca.
Founded in 1846, Laurentian Bank ranks seventh among Canadian Schedule I
banks, with assets of over $17 billion. The Bank offers highly competitive
products and superior personalized service to meet the banking and financial
needs of individuals and small and medium-sized businesses. The Bank's common
shares are traded on the Toronto Stock Exchange (ticker symbol: LB). The
address of the Bank's Web site is www.laurentianbank.com
Forward-Looking Statements
All statements in this press release that do not directly and exclusively
relate to historical facts constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements represent CGI Group Inc.'s intentions, plans, expectations, and
beliefs, and are subject to risks, uncertainties, and other factors, of which
many are beyond the control of the Company. These factors could cause actual
results to differ materially from such forward-looking statements.
These factors include and are not restricted to the timing and size of
contracts, acquisitions and other corporate developments; the ability to
attract and retain qualified employees; market competition in the rapidly-
evolving information technology industry; general economic and business
conditions; and other risks identified in Management's Discussion and Analysis
(MD&A) in CGI Group Inc.'s annual report or Form 40F filed with the U.S.
Securities & Exchange Commission and the Company's Annual Information Form
filed with Canadian securities commissions. All of the risk factors included
in these filed documents are included here by reference. CGI disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. |
