Colorado awards contract to CGI for modernization of state payroll system

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Multi-year project will replace legacy systems serving 30,000 employees

FAIRFAX, VA, March 8, 2017 /PRNewswire/ - CGI (NYSE: GIB) (TSX: GIB.A) today announced its selection by the State of Colorado for a multi-year contract to modernize outdated, legacy payroll systems that serve more than 30,000 public employees across 21 state agencies and departments. The contract, with optional years, is valued at US$66.2 million over 20 years. As part of an ongoing process to overhaul Colorado's enterprise resource planning (ERP) system, CGI will provide IT services and solutions to replace various manual payroll processes with a unified human resource information system (HRIS) that is efficient, reliable and cost-effective.

"We are excited to work with CGI," said Kim Burgess, Chief Human Resources Officer for the State of Colorado. "We look forward to ongoing collaboration that results in a system that better serves Colorado agencies and their employees, and advances our mission to act as effective stewards of the state's public resources."

In 2014, CGI successfully launched a new financial management system for Colorado utilizing the unique built-for-government capabilities of its CGI Advantage ERP solution. The Colorado Operations Resource Engine (CORE) replaced an outdated, legacy 22-year old accounting system. The new accounting system integrates budget and purchasing functions, allowing the state to replace multiple aging and redundant systems with a single source of reliable and transparent fiscal data for most financial operations.

Under the direction of the Colorado Department of Personnel and Administration and the Governor's Office of Information Technology, CGI will now embark on the project of modernizing a payroll system comprised of multiple, aging legacy systems which are difficult to improve, challenging to support and integrate, and written in outdated programming languages.

"The new payroll system will contribute to the state's ability to operate more efficiently and with greater transparency and accountability," said John Manta, Vice-President, CGI. "This award is a tremendous opportunity for CGI to build on our technology accomplishments in the State of Colorado and continue a long-standing partnership in the service of improving vital state systems."

To the task of upgrading Colorado's payroll system, CGI brings more than 40 years of ERP software and service delivery for federal, state and local governments. CGI has implemented more than 400 government ERP systems, including those in Massachusetts, Kentucky, Alabama, Alaska, Arizona, Colorado and West Virginia. Recently, six of the last seven states to pursue ERP modernizations chose CGI as their technology partner, and two of the nation's most populous local jurisdictions -- New York City and Los Angeles County – also utilize ERP systems powered by CGI.

"We are proud to add Colorado's payroll operations to the growing number of state and local governments that understand our built-for-government ERP means less risk and more secure operations. CGI Advantage's on-premise as well as cloud-based solutions protects sensitive data and critical government functions," added Daniel Keene, Senior Vice-President of CGI's Advantage program.

About CGI

Founded in 1976, CGI is one of the largest IT and business process services providers in the world. Operating in hundreds of locations across the globe, CGI helps clients become customer-centric digital organizations. We deliver high-quality business and IT consulting, systems integration and transformational outsourcing services, complemented by more than 150 IP-based solutions, to support clients in transforming into digital enterprises end to end. CGI works with clients around the world through a unique client proximity and best-fit global delivery model to accelerate their digital transformation, ensure on-time, within budget delivery, and drive competitive advantage in today's increasingly digital world. 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: www.cgi.com.

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"), 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.

SOURCE CGI Group Inc.

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