Expected to yield 20% average annual savings in
IT operating costs
MONTRÉAL, May 11, 2016
/PRNewswire/ - 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. www.snclavalin.com
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: 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") 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.