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

To: tom ablett who wrote (1014)	2/21/1999 11:23:00 AM
From: The Coz	Read Replies (2) \| Respond to of 1673

Can anyone explain to me this perception that CGI can't complete it's backlog??? CGI as several contracts for which they will supply services over periods of 5 to 10 years. They have 5 to 10 years to deliver the services NOT 2 years. Let's be realistic here. It's not because they have a backlog that one should conclude they can't deliver !!!! When you enter into an outsourcing contract, you just don't do this for a period of 18 months. You do this for a long period of time. Outsourcing is a great way to guarantee and smooth revenues over a long period of time. Predictability! You don't have to worry if they will sell enough of their new release of software XYZ to stabilize the revenues. They will complete the backlog but over the period of the contracts. Simple. Furthermore, why would CGI look for another acquisition if they were too busy making sure to deliver their backlog? I believe that the current management in place is bright enough to know what their priorities are. They would focus on this issue if they knew they had a delivery problem!!! Funny though. CGI's customer keep renewing their contracts. I'm quite sure that it's because they get what they sign for, no? And by the last comment of Serge Godin about CGI becoming a world champion in IT services, trust me, this backlog will increase big time and not because CGI can't deliver. Because of large contracts and acquisitions. And like you said Tom, time will tell. I think I made my point ! The Coz