13-year agreement will provide £100million of economic benefits to the local area and create up to 200 new jobs
CGI (NYSE: GIB) (TSX: GIB.A) has been selected by the Scottish Borders Council (SBC) to provide transformational IT to enable the introduction of integrated digital services. The transformation at SBC will result in an improved citizen digital experience across a range of council services whilst delivering new high speed broadband initiatives for schools and the local community.
The contract is valued at £92.5 million over a 13-year term, and will facilitate the Council’s digital channel shift, while at the same time, injecting over £100 million into the local economy. As part of the deal CGI will establish an ICT delivery centre of excellence within the Scottish Borders region to support its growing client base in Scotland. The delivery centre will aid in the development of the local economy with the creation of 200 new jobs and employment opportunities for local young people will be offered through Modern Apprenticeships.
Council Leader David Parker said: “This is a landmark deal for the Scottish Borders as we join forces with one of the leading IT companies in the world to offer a once in a generation transformational opportunity for the region. For CGI to choose the Scottish Borders to base their second UK Service Centre is a genuinely exciting opportunity. Not only does it mean our existing ICT staff will remain in the Borders, but it will also bring a wide range of benefits and opportunities.”
As well as delivering digital services for the Council’s citizens, encouraging them to carry out transactions online, CGI will unbundle six telephone exchanges within the Scottish Borders Council area, creating the opportunity for new community broadband partnerships as well high-speed Internet connectivity in selected schools. Central to delivering on the ambitious plans are CGI’s local small/medium enterprise (SME) partners from the region. Examples of key SME partners include Commsworld, one of Scotland’s leading telecommunications network providers and Dacoll, an award-winning local provider of technology and business solutions.
“We are delighted to partner with the Scottish Border Council to enable simpler and more accessible digital services for citizens”, said Tim Gregory, UK President at CGI. “As part of our commitment to delivering on our plans we will be creating an ICT delivery centre of excellence in the region which will mean up to 200 new, high-value jobs for the area including digital and Modern Apprentice roles.” He continued: “CGI is committed to working with a diverse range of partners to help bring flexible, cost-effective digital solutions to local and central government across the UK.”
SBC benefits from highly competitive commercial terms negotiated by City of Edinburgh Council in August 2015 as part of its agreement with CGI. That contract was designed flexibly to allow other Public Sector Partners (PSPs) such as SBC, to procure services with increased economies of scale and flexibility.
As part of the agreement CGI will update ICT systems across all Council service areas and automate and integrate back-office processes with a new Enterprise Resource Planning (ERP) system. The new ERP system will integrate with citizen-facing digital platforms to enable cost reductions and increased capacity, while improving service quality, securing more effective and efficient citizen engagement. The digital self-service approach will be enabled by the Agilisys Digital platform, which offers citizens a seamless online experience, available to them 24/7. Agilisys will also deliver a new integrated back office solution, which will replace the council’s current Finance and HR systems.
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 65,000 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 approximately C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB).Website: www.cgi.com.
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”) and in other public disclosure documents , in CGI’s Annual Report, and in the Company’s Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), in CGI’s Annual Report on Form 40-F filed withand the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), 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.
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