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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: Sili Investor who wrote (1453)	11/17/1999 12:31:00 PM
From: BM	Read Replies (1) \| Respond to of 1673

There may be something to the Globe & Mail article, Nortel has started already This one to Perot for legacy systems involves only 60 employees. I would guess there's a whole lot more to come - hopefully the higher margin consulting and ERP stuff to CGI. Stay tuned! Nortel Networks signs technology services agreement with Perot Systems Agreement transitions Network Processing Services to Perot Systems RICHARDSON, TX, Nov. 17 /CNW/ - Nortel Networks (NYSE/TSE: NT) today announced a five-year information technology services agreement with Perot Systems (NYSE: PER) pursuant to which they will assume responsibility for specific Nortel Networks Information Systems including Multiple Virtual System (MVS), Virtual Machine (VM), Virtual Memory System (VMS), and Multi-Programming Executive (MPE) computing services effective December 6, 1999. The agreement allows Nortel Networks to realize operational efficiencies by outsourcing activities better undertaken by specialist organizations such as Perot Systems. ``This agreement with Perot Systems is in line with our business strategy to divest capabilities that are today readily available from expert contract providers,' said Keith Powell, senior vice president and chief information officer, Nortel Networks. ``We believe this will allow us to meet or exceed current service and support levels and manage growth in line with building the high-performance Internet.' Today's announcement is expected to impact approximately 60 Nortel Networks Processing Services employees who provide technical support, systems administration, operations, and maintenance on the legacy platforms. Perot Systems is expected to make employment offers to approximately half of the affected employees. ``We recognize that some of the decisions we're making today are difficult for those who will be leaving the company,' said Powell. ``We are committed to working with those employees, but at the end of the day we think that their skills will be better utilized by an organization who's core competencies are more in line with their expertise.' Nortel Networks is a global leader in telephony, data, wireless and wireline solutions for the Internet. The Company had 1998 revenues of US$17.6 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high- performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com. -30- For further information: Business Media Relations: David Chamberlin, Nortel Networks, (972) 685-4648, ddchamb@nortelnetworks.com; Investor Relations: Angela McMonagle, Nortel Networks, (905) 863-6044, mcmona@nortelnetworks.com; Archived images on this organization are available through CNW E-Pix at www.newswire.ca. Images are free to members of The Canadian Press.