$63.9 million contract extends CGI engagement with State of Wyoming for 12 years
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FAIRFAX, VA, Nov. 16, 2016 /PRNewswire/ - CGI (NYSE: GIB) (TSX: GIB.A) today announced the renewal of a contract with the Wyoming State Auditor's Office for hosting and maintenance of the state's financial and human resource/payroll systems. The contract extension, valued at US$63.9 million, includes a technology upgrade and continued utilization of CGI's Managed Advantage services, an enterprise resource planning (ERP) system and support service used by the state since 2002.
"The State Auditor's Office, together with CGI, worked hard to find areas of operational improvement and efficiencies to reduce Wyoming's costs in order to meet the mandatory budget reductions due to the decrease in mineral revenues," said Wyoming State Auditor Cynthia Cloud. "We were able to work together and meet this challenge."
Under the revised agreement, system upgrade costs are spread over 12 years creating affordable predictive costs for the state as it experiences budget constraints. CGI has managed Wyoming's financial management systems and human resources and payroll systems for more than two decades. In 2012, CGI migrated the state to CGI private cloud based Managed Advantage offering. CGI's Managed Advantage solutions provides Wyoming with secure day-to-day ERP operations management, including application maintenance, technical and functional upgrades, disaster recovery services and client support.
"We are proud to offer ongoing solutions and services that will allow state departments and employees to maximize efficiency and reduce administrative burdens," said Dave Delgado, Senior Vice-President, CGI. "Our Managed Advantage solution for Wyoming allows the system to do the work, and will continue to save time, reduce manual data entry and processing, and help the state more effectively perform vital financial and human resource/payroll management functions."
CGI's ERP expertise is built on decades of delivering solutions built for the unique needs of state and local governments. CGI has been active in government financial management for more than 40 years, with ERP solutions that manage in excess of $700 billion. Recently, six of the last eight U.S. states to move forward with ERP modernizations chose to partner with CGI, which has launched 14 successful statewide systems in the past 30 months.
"Wyoming is a pioneer in cloud-based ERP and we are proud to continue our trusted partnership with the state," said Daniel Keene, Senior Vice-President of CGI's Advantage program. "CGI's ability to control all aspects of our cloud-based, built-for-government ERP offering—including application software, integration services and cloud infrastructure services—continues to differentiate us in the market. Wyoming benefits from our CGI Advantage solution to drive necessary digital transformation projects for their citizens while managing their downsized budget."
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 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: 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") and in other public disclosure documents filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), 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.