PORTUGAL TELECOM S.A. SELECTS CGI/CASE/IBM TO NEGOTIATE LONG TERM IS/IT PARTNERSHIP
Portugal Telecom Group announced that it has selected CGI and two other partners to negotiate the launch of two companies that will provide it with long term full IS/IT services. As part of the agreement, CGI, with IBM Global Services and Portuguese-based IS company Case, will provide Portugal Telecom Group with full IS/IT services and work with the client to address the needs of the Portugal market at large. The dollar value of the potential contract has not been disclosed.
As part of the exclusive negotiations, CGI, its two partners and Portugal Telecom will seek to agree on the terms of a long-term contract, possibly extending over 10 years, based on which two separate companies will be established to provide the client with full IS/IT services.
The first company will be responsible for applications development and maintenance and day-to-day management of Portugal Telecom Group's IS/IT operations. It will be managed jointly by CGI and Case, with CGI as lead contractor. The second company, managed by IBM, will have responsibility for the client's data centre operations. The intent is for the partners to provide seamless solutions and services to meet Portugal Telecom Group's current and future needs.
"CGI is pleased that it was selected as a strategic partner of Portugal Telecom to fulfill this important contract," said Jean Brassard, CGI's President and Chief Operating Officer. "CGI's acquisition of Bell Sygma Telecom Solutions and Bell Sygma International has provided us with the critical mass, as well as the right combination of IT and telecom expertise, which we are leveraging to establish ourselves in the European market," he added.
Through this transaction, Portugal Telecom Group aims to further enhance the efficiency of its IS/IT operations and its ability to address new business opportunities with small and medium enterprises and corporations.
Over the next two months, CGI and its partners will conduct due diligence of Portugal Telecom Group's operations, while entering into formal negotiations with the aim of signing an agreement by the end of May 1999.
CGI is the largest independent information technology services firm in Canada and the sixth largest in North America, based on its revenue run rate of $1.3 billion. CGI's order backlog totals $6.7 billion and the company currently has proposals outstanding for an additional $4 billion in potential large contracts. CGI has 8,000 professionals and provides end-to-end IT services and business solutions to some 2,000 clients in the United States, Canada and 20 countries around the world. Its shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A). As of March 19, 1999, they will be included in the Toronto Stock Exchange's TSE 100, and they are currently part of the TSE 300 Composite and TSE 200 indexes. Web site: www.cgi.ca
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