BCE TELEGLOBE CHOOSES CGI FOR SEVEN-YEAR IS/IT OUTSOURCING AGREEMENT
BCE Teleglobe and CGI Group Inc. (NYSE: GIB; TSE: GIB.A) (CGI) today announced the signing of a memorandum of understanding for the management and operation of BCE Teleglobe's processing infrastructure including IT voice legacy systems, desktop, e-mail, and administrative server solutions as well as back office software support. CGI will also develop and maintain applications. This seven-year IS/IT outsourcing agreement is a portion of what BCE Teleglobe previously announced today.
CGI will become BCE Teleglobe's IS/IT delivery manager and designated systems integrator via a dedicated team of client care, network, server and application development specialists. As part of the agreement, valued at between CDN$125-150 million, over 100 employees will be transferred to CGI by the summer of 2002 when the terms and conditions of the agreement are finalized.
"In keeping with our business goals, BCE Teleglobe will outsource to Bell the overall IT development and partner with CGI for IT functions and legacy application support. This will ultimately result in enabling us to intensely focus on the sales and marketing of our services," said Charles Childers, president of BCE Teleglobe.
Michael Roach president, Canada and Europe for CGI added: "We are delighted to be chosen as BCE Teleglobe's IT partner. This agreement further solidifies and demonstrates the strength our long-term relationship with the BCE family of companies. We warmly welcome the new members to our team and to our telecom vertical, our second largest client sector."
About BCE Teleglobe
BCE Teleglobe, a leading provider of global communications and Internet services, enables its customers to maximize the potential of the Internet through its delivery of hosting services, content distribution and global connectivity. The company is deploying a network utilizing state-of-the-art transmission equipment capable of up to 1.6 terabits capacity per fiber when fully deployed and providing a robust platform for a portfolio of Internet and data services. With 160 POPS serving more than 110 cities, BCE Teleglobe operates one of the world's largest international Internet backbones serving a broad base of enterprise, Internet Content Provider (ICP), Internet Service Provider (ISP) and carrier customers. BCE Teleglobe is owned by BCE Inc., based in Montreal, Canada.
Founded in 1976, CGI is the fourth largest independent information technology services firm in North America, based on its headcount of more than 13,000 professionals. CGI's annualized revenue run-rate totals US$1.3 billion (CDN$2.1 billion). CGI's order backlog currently totals US$5.75 billion (CDN$9.2 billion). CGI provides end-to-end IT services and business solutions to more than 3,000 clients in countries such as the United States, Canada, the United Kingdom and France from more than 60 offices. CGI's shares are listed on the NYSE (GIB) and the TSE (GIB.A). They are included in the TSE 100 Composite Index as well as the S&P/TSE Canadian Information Technology and Canadian MidCap Indices.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent CGI Group Inc.'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.
These factors include and are not restricted to the timing and size of contracts, acquisitions and other corporate developments; the ability to attract and retain qualified employees; market competition in the rapidly-evolving information technology industry; general economic and business conditions, foreign exchange and other risks identified in the Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s Annual Report or Form 40-F filed with the SEC, the Company's Annual Information Form filed with the Canadian securities commissions, on the Registration Statement on Form F-4 filed with the SEC in connection with the acquisition of IMRglobal and with the Forms 10-K and 10-Q of IMRglobal filed with the SEC for the periods ended December 31, 2000 and March 31, 2001 respectively. All of the risk factors included in these filed documents are included here by reference. CGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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