CGI (NYSE: GIB) (TSX: GIB.A) today announced that Finnish insurance company LähiTapiola Group has extended its information technology and communications (ICT) outsourcing agreement with LTC-Otso Oy joint venture of CGI and LähiTapiola Group. LTC-Otso delivers a full range of ICT outsourcing services to LähiTapiola Group, leveraging CGI’s ISO-certified service models and global resources. The new agreement is valid until the end of 2021, with a total value of approximately 180 million euros.
CGI and LähiTapiola Group established LTC-Otso as a joint venture in 2013 to deliver ICT services to the banking and insurance business of LähiTapiola Group and its subsidiaries. LähiTapiola Group is one of the largest insurance companies in Finland.
“Continued investment in this partnership is well worth the returns,” said CEO Harri Lauslahti of LähiTapiola Palvelut Ltd. “LTC-Otso has demonstrated its ability to deliver the services we require cost efficiently and with a high standard of quality.”
Managing Director of Tieto-Tapiola Janne Kärkkäinen, who was responsible for contract negotiations on behalf of LähiTapiola Group, noted, “ICT outsourcing has turned out to be so profitable that we wanted to extend our partnership before the existing contract period expired.”
“This extension demonstrates that our partnership has been productive and has generated sustainable value,” said LTC-Otso’s Managing Director Jukka Tarkiainen. “With extensive outsourcing arrangements of this type, our recipe for success is combining a strong local presence with global resources and proven operating models.”
“LTC-Otso is an excellent demonstration of how CGI's service models work in Finland,” said Heikki Nikku, President of CGI’s Nordic operations. “Our core business is ICT development and modernization to help companies reap the full benefits of ICT, such as the potential of digitalization. This work, in turn, allows clients to focus on the development of their own core business and services.”
Extension of the LähiTapiola Group ICT outsourcing agreement is conditional upon the end of the appeal period of the Finnish Tax Administration (last week of July).
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, and infrastructure management, as well as a wide range of proprietary solutions. With annual revenue in excess of C$10 billion and an order backlog of C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Web site: www.cgi.com.
LTC-Otso is a joint venture of CGI and LähiTapiola Group, specializing in IT solutions for the insurance and banking sectors. The 300 IT experts employed by LTC-Otso provide extensive business and solution consulting services, as well as product and integration solutions. Specifically, the company delivers insurance, financial management, banking, payment transaction and invoicing services, and also specializes in supporting the needs of online business, financial and HR administration. Its clients include Elo, Etera, LähiTapiola Group, S-Pankki and Turva. For more information, visit www.ltc-otso.fi.
LähiTapiola is a mutual group owned by its customers. LähiTapiola's network comprises 20 regional mutual insurance companies and LähiTapiola Vahinkovakuutusyhtiö, responsible for statutory and corporate insurance. The regional companies offer their customers a comprehensive range of insurance, banking, savings and investment services. In addition to LähiTapiola Vahinkovakuutus and the regional companies, the group includes LähiTapiola Henkiyhtiö, LähiTapiola Varainhoito and LähiTapiola Kiinteistövarainhoito. LähiTapiola Palvelut Ltd delivers the expert development and support services needed by the companies and group steering functions of LähiTapiola Group. For more information, visit www.lahitapiola.fi.
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”), in CGI’s Annual Report, in CGI’s Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company’s Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), 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.
For more information:
Investors and financial media-CGI
Executive Vice-President, Global Communications and Investor Relations
Local media in Finland
Communications Manager, CGI Finland
+358 50 380 5601
Managing Director, LTC-Otso
+358 40 7796 799
Managing Director, Tieto-Tapiola
+358 50 482 0409