STOCKHOLM, SWEDEN--(Marketwired - Aug 19, 2014) - CGI (GIB)(TSX:GIB.A) has signed an agreement with Toyota Material Handling Europe (TMHE), a global leader in truck manufacturing and material handling, for the outsourcing of the company's entire IT operations. Under the agreement, a majority of employees from TMHE's IT department will be rebadged to CGI. The contract has an estimated value of 230 million SEK (approximately CAD $37 million) for five years.
The company's main purpose in outsourcing is to free up additional resources for business development. Cost savings, quality improvements and access to expertise and innovation from an experienced IT partner are other motivating reasons.
CGI has been given responsibility for TMHE's data center, as well as its application management, service desk, email, network, collaboration, storage and security services. In addition, CGI will deliver its standardized IT services for workplaces for approximately 6,000 users in Europe.
"We were looking for a strategic and innovative partner and selected CGI because of its experience with similar projects and its ability to improve our IT on a continuous basis," said Johan Kroon, CIO, TMHE. "Another crucial factor is CGI's HR strategy and processes for transferring personnel. In addition, increased cost control and the transit to more flexible capacity services will result in better quality and lower costs for our customers."
"We are pleased with the confidence TMHE has placed in us to provide a broad spectrum of IT services and look forward to having a continuous dialogue about new ideas to develop and streamline its IT operations," said Pär Fors, Senior Vice President, CGI, Sweden. "TMHE's choice of CGI as its outsourcing partner is proof that our outsourcing services are well in line with current market needs and expectations."
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 68,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as a wide range of proprietary solutions. With annual revenue in excess of C$10 billion and an order backlog of approximately C$19 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of Canadian securities laws. These statements and this information represent CGI'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 or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI's annual and quarterly Management's Discussion and Analysis ("MD&A"), in CGI's Annual Report, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.