New Contracts Totalling $12 Million
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: CGI GROUP INC.
TSE;ME SYMBOL: GIB.A
JANUARY 27, 1997
New Contracts Totalling $12 Million: CGI Strengthens its
Presence in Information Technology Outsourcing
MONTREAL, QUEBEC--The CGI Group announced today it has secured six
outsourcing contracts worth a total of $12 million. The new
clients are: The Montreal Exchange, Quebec City-based Trust Prets
et Revenus, Rotisseries St-Hubert, Teleglobe, Provigo and the
Societe quebecoise d'information juridique (SOQUIJ). These
contracts represent incremental revenues of approximately $3
million annually for the next three years, with the remaining
portion of the work taking place over the subsequent five years.
Most of the contracts, spanning periods of two to eight years, may
be extended. They encompass services ranging from a simple
hosting of systems to the full management by CGI of the client's
entire information services, including ensuring their
technological evolution.
In Canada, CGI is among the largest suppliers in the rapidly
expanding market and its acquisition of IST's outsourcing division
in 1996 allowed it to further strengthen its leadership position.
CGI expects that in fiscal 1996-1997, outsourcing activities will
generate a full 40 percent of its revenues and that this market
segment will grow by 23 percent annually from now to the year
2000.
Outsourcing is a practice through which an organization assigns
the management of all or part of its information systems to a
third party. Today, many companies favour such an approach, as it
frees their internal resources and allows them to concentrate on
core business.
CGI is the largest Canadian-owned, publicly-traded consulting firm
in information technology, systems integration and outsourcing.
Its 1,900 high-level professionals offer complete business
solutions to public and private sector organizations in Canada and
the Northeastern United States.
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