CGI and SAP Canada today announced the signing of an application service provider (ASP) alliance agreement. The partnership makes CGI one of SAP Canada's key business solution services providers for clients who wish to acquire enterprise resource planning (ERP) solutions according to a hosted, ASP model. As part of the non-exclusive agreement, CGI will target medium and large-sized enterprises across Canada.
"From a business standpoint, our ASP offering will provide clients with a high degree of flexibility, while also ensuring rapid implementation and operational simplicity, thus allowing them to realize savings," said Jean Brassard, CGI's President and COO. "We believe that based on CGI's capabilities and expertise in the implementation, maintenance and ongoing operation of SAP systems, our service offering will present compelling benefits for potential clients."
For clients, the ASP model presents an alternate ERP solution that delivers guaranteed service levels covering the deployment, infrastructure, operations and management of the application software from a central facility. Applications are accessed remotely, over leased lines or, increasingly, through the Internet. A recent Gartner Group study evaluates that the North American ASP market (including software support, IT consulting, development and integration, as well as education and training) was worth US$298 million in 1998. It expects the North American market to grow to US$9.8 billion by 2003, representing a compound annual growth rate of 90% over this period.
"Our partnership with SAP Canada is yet another step in CGI's overall e-business strategy," added Jean Brassard. "Our e-offering has been defined, partnership agreements finalized and significant e-business investment projects are underway. And now, we are teaming up with a leading ERP software provider to meet the growing needs of the emerging Canadian ASP market, which is shifting to Web-enabled technologies."
SAP Canada has selected CGI as a certified partner based on its extensive track record in the implementation, support and outsourcing of SAP enterprise resource planning solutions as well as its data centre infrastructure. CGI currently operates one of the largest SAP centres of expertise in Canada, with mirrored capabilities in Montreal and Toronto.
CGI is the largest independent information technology consulting firm in Canada and the fifth largest in North America, based on its revenue run rate of CDN$1.6Â billion. CGI's order backlog totals approximately CDN$7.2Â billion and the Company has proposals worth CDN$4Â billion currently being reviewed by potential clients. CGI has 10,000Â professionals and provides end-to-end IT services and business solutions to 2,500Â clients in Canada, the United States and more than 23Â countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto exchange (GIB.A). They are included in the Toronto Stock Exchange's TSE 300Â Composite and TSE 100Â indexes. Web site: www.cgi.ca
All statements contained in this or any other press release of CGI Group Inc., or in any document filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the Company, that do not directly and exclusively relate to historical facts, constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Report Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.
This press release may contain forward looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the company's business and results of operations. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the various factors set forth in the Company's annual report or Form 40F filed with the SEC and its Annual Information Form filed with Canadian securities commissions, which important factors are included here by reference.
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For more information:
CGI
Ronald White
Director, Investor and Media Relations
(514) 841-3230Â
ronald.white@cgi.ca