CGI Group (Europe) Limited (CGI) (TSX: GIB.A; NYSE: GIB) has signed an applications management agreement worth over £6 million (CDN$15 million) with Highway Insurance Holdings Plc (Highway), the UK's eleventh largest motor insurer.
The eight year contract follows CGI's recent implementation of its renowned insurance administration system GIOS (Global Insurance Open Solution) at Highway. GIOS helps insurance providers speed up claim resolution, improve underwriting accuracy and significantly reduce red-tape through the electronic automation of administrative processes.
The new applications management contract will enable Highway to benefit from CGI's specialist support services based from its GIOS centre in Bristol. It will also enable Highway to benefit from CGI's remote Unix support services for its production and development servers. In addition, CGI will dedicate technical services to support and maintain Highway's database systems on Oracle.
Stuart Davies, general manager and claims director at Highway Insurance Holdings Plc, comments: "The GIOS solution which was designed and built by CGI, has also been tailored to meet Highway's very specific requirements. We were therefore confident, taking into account our existing relationship with CGI, that the management of the applications would best be placed in CGI's safe hands. One of the other advantages of working with CGI is that the company also provides a very flexible service, tailored to our ever-changing needs. Consequently, the new contract recognises our long term partnership with CGI and is expected to bring significant cost and efficiency savings over time."
Gavin Chapman, managing director of CGI Group (Europe) Ltd, adds: "Highway's initial licensing agreement for GIOS included some support services. However, this new agreement will ensure that Highway now has a dedicated and flexible team on hand to handle all of its GIOS application and infrastructure support needs in a highly cost-effective manner. We have had a very successful 17 year relationship with Highway and this new contract will ensure that it continues long into the future."
About Highway
Highway Insurance is the UK's 11th largest motor insurer. Founded over 50 years ago, Highway writes a broad range of motor risks and in 2002 will write some GBP 265 million in gross premiums, representing 500,000 policies. Highway is part of the Highway Insurance Holdings Plc group, quoted on the London Stock Exchange (HWY.L). Web site: www.highway-insurance.co.uk.
About CGI
Founded in 1976, CGI is the fourth largest independent information technology services firm in North America, based on its headcount. CGI and its affiliated companies employ more than 14,600 professionals. CGI's annualized revenue run-rate totals CDN$2.3 billion (US$1.5 billion). As at September 30, 2002, CGI's order backlog currently totals CDN$10.4 billion (US$6.7 billion). CGI provides end-to-end IT services and business solutions to more than 3,000 clients worldwide from more than 60 offices. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB). They are included in the TSX 100 Composite Index as well as the S&P/TSX Canadian Information Technology and Canadian MidCap Indices.
Website: www.cgi.com
Forward-Looking Statements
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. 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 authorities, 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, which speak only as of the date on which they are made. In particular, statements relating to future revenue from outsourcing contracts are forward-looking statements. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
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