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SNC-Lavalin and CGI sign IT outsourcing agreement

by ahnationtalk on May 11, 20161165 Views


May 11, 2016

SNC-Lavalin and CGI sign IT outsourcing agreement

Expected to yield 20% average annual savings in IT operating costs

SNC-Lavalin (TSX:SNC) and CGI (TSX: GIB.A) (NYSE: GIB) are pleased to jointly announce a twelve-year Information Technology (IT) outsourcing agreement valued at $500 million. SNC-Lavalin will outsource the majority of its technology management and application needs, leveraging CGI’s global scale, best practices in IT modernization and track record of delivering continuous improvement across processes, technology and operations.

SNC-Lavalin will retain responsibility for its IT strategy, cyber security, as well as the development of applications linked to the company’s core business. Under the agreement, 400 IT positions in over 25 countries will join CGI.

“The agreement will yield an average annual savings of 20% in terms of our IT operating costs for the duration of the contract. This will enable us to reinvest to improve our competitiveness in the global engineering and construction marketplace,” explained Neil Bruce, President and Chief Executive Officer, SNC-Lavalin. “It is the first of many business improvement initiatives that will be completed as part of our Operational Excellence approach, which we launched at the end of March. Designed to improve our efficiency and execution, it will enable us to focus on what we do best — leveraging our global engineering and construction expertise to deliver on our clients’ specific needs.”

“At CGI, we are committed to helping clients succeed. This transformational outsourcing partnership aligns with this commitment and the growing demand for organizations to reduce operating costs in order to invest in the areas that their customers value most. Our work with SNC-Lavalin will further optimize and improve their IT operations, while, helping them achieve their business goals,” explained Michael E. Roach, President and Chief Executive Officer, CGI.

Mark Boyajian, President, Canada operations, CGI, added: “SNC-Lavalin will benefit from CGI’s proven operational excellence, differentiated capabilities and strategic investments to transition towards a more digital business model.”

“We are pleased to have found a strong partner in another Quebec-based, global leader that is also recognized for delivering significant value to its clients. Our collaboration is a testament to the international competitiveness of Canada’s services industries, such as engineering & construction and IT services,” said Dale Clarke, Executive Vice-President, Integrated Management Systems, SNC-Lavalin. SNC-Lavalin IT employees will join CGI in accordance with their respective country legislative and administrative processes.

About SNC-Lavalin

Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin’s employees are proud to build what matters. Our teams provide engineering, procurement construction, completions and commissioning services together with a range of sustaining capital services to clients in our four industry sectors, oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions.

About CGI

Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 65,000 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 150 IP-based services and solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website:

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 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”) and in other public disclosure documents filed with the Canadian securities authorities (filed on SEDAR at and the U.S. Securities and Exchange Commission (filed on EDGAR at, 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.

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