PORTUGAL TELECOM SIGNS INFORMATION TECHNOLOGY SERVICES AGREEMENT WITH CASE, CGI AND IBM
Portugal Telecom, IBM, CGI and Case today announced that an agreement was signed on 29 October 1999 creating a systems and information technology partnership worth US$1 billion over 10 years. The largest such contract ever signed in Portugal.
In a competitive market undergoing major change demanding specialisation and focus, Portugal Telecom (PT) has elected to partner with systems integration and information technology leaders, CGI, Case, and IBM, to promote its position in the info-communications market.
The agreement involves the creation of two companies: PT-SI (PT Information Systems) and DCSI (Data, Computers and Information Solutions). The information systems and data processing functions of the PT Group companies will be outsourced to these new companies.
"With this partnership, PT strengthens its position in information technology both as a crucial support element for its business, and as an integrated and innovative solutions supplier in the market. The concentration of the information and technology systems of PT Group in these two new companies will enable increased specialisation by the multiple enterprise units of the Group in our core business. In addition, we will benefit from increased efficiency in our information systems and IT operations thanks to the experience and know how of our new partners," said Francisco Padinha, Member of the Board of Directors, Portugal Telecom.
PT-SI (PT Information Systems) will mainly act in the Portugal Telecom Group market, giving simultaneous expertise support in the area of the information technology and telecommunications convergence, while supporting the business strategy of PT Prime / Soluções Empresariais (the new company of the PT Group for the enterprise market), namely in the integration system and end-to-end solutions area.
In the scope of this agreement, the CGI and Case consortium will manage the IT functions of PT-SI on behalf of PT Group, including applications management and support. In addition to the support PT-SI will provide to PT, IBM will work with PT to develop data processing and physical infrastructure requirements. About 500 employees will be transferred to the two companies.
PTSI will officially begin operations on January 15, 2000. The consortium members have appointed Alberto Sant'ana Godinho, as Chief Executive Officer of PT-SI: "I have worked with many of the PT companies and I am very familiar with PT's specific IT needs. With this accrued knowledge, I feel confident about our ability to grow PT-SI."
Vicente Gaspar Pires, Case's President, said, "Case and PT have been partners for many years. We look forward to building on our existing relationship and on working with our global partners, CGI and IBM, to meet PT's evolving IT requirements."
"Portugal Telecom is a dynamic leading-edge company wanting to maximize its assets wisely in order to remain ahead of the competition and at the forefront of evolution. These two companies, made up of solid partners, will help achieve PT's strategic goals," said Jean Brassard, President and Chief Operating Officer of CGI.
Frank Kern, General Manager, Professional Services, IBM Global Services EMEA observed, "PT and IBM enjoy a long history. PT was one of IBM's first customers in Portugal. We want to build on this history for the new millennium and help PT grow in Portugal and in Brazil through a dynamic IT transformation. We look forward to working with strong partners like CGI and Case to meet PT's needs."
PT is the largest telecommunications and multimedia national operator with revenue of 2389 million Euros in the first nine months of 1999. It is 90% owned by private shareholders and offers a variety of services from fixed and mobile telecommunications to multimedia and content, to solutions for enterprises and the entertainment arena. PT is one of the largest companies in the Lisbon stockmarket, and is also quoted on the New York stock exchange. Within its internationalization strategy, PT extended its activities to external markets, namely Brazil where it supervises the largest mobile wireless company in South America, and in Morocco, China, Botswana, Cape Verde, Guinea - Bissau, S. Tome and Prince, Mozambique and Angola.
Case is the most important Portuguese Business and Information Systems Consulting firm, with 1998 revenues of US$22 million and a estimated revenue of US$36 million for 1999 operations. Case is one of the fastest growing companies in the market and is positioned as the leader in Portugal. Case has expanded a product and service offering that now includes: Consulting, Application development, ERP implementation, Data warehouse, Electronic Commerce, Training, Information Systems Planning, Organizational Transformation, Knowledge Management, and Outsourcing. With a team of 200 highly motivated Consultants and Business experts, Case has operations and business in Portugal, Spain, Cape Verde, Angola, Mozambique and Brazil.
CGI is the fifth largest independent information technology consulting firm in North America and the largest in Canada, based on its revenue run rate of CDN$1.6 billion. The company's order backlog totals approximately CDN$7.5 billion. The company currently has proposals outstanding for an additional CDN$4 billion in potential large contracts. In Europe, CGI is known under the name of Certis. CGI has 10,000 professionals and provides end-to-end IT services and business solutions to 2,500 clients in Canada, the United States and 23 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 100 indexes. Web site: www.cgi.ca.
About IBM Global Services
IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 136,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. More information can be found at www.ibm.com/services
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