Governments everywhere must automate faster to boost productivity as budget deficits are pared, and CGI Group Inc., Canada's biggest independent IT services firm, says recent U.S. acquisitions, including Stanley Inc., will pay off handsomely down the road.
CGI paid almost $1 billion in 2010 for Stanley, a big IT services firm, to expand its work with U.S. government agencies in defence, cyber-security and health care. Analysts called it "the deal we've been waiting for," but some wanted CGI to expand in the commercial sector.
"Roughly half our total revenue now comes from the U.S. and margins there are rapidly catching up with Canada's," CEO Michael Roach said after Wednesday's annual shareholders' meeting.
He said CGI has started off fiscal 2012 with $1.4 billion in new contracts, extensions and renewals, equal to 135 per cent of revenue, and an order backlog of $13.6 billion, up $578 million from a year earlier.
"The outlook is strong for the back half this year as many contracts signed last year kick in," he said, "and we're focused primarily on organic growth, debt reduction and holding the pace of share buybacks."
Read more: http://www.montrealgazette.com/business/looks+south+expansion/6088279/story.html#ixzz1pVHdseaD
CGI paid almost $1 billion in 2010 for Stanley, a big IT services firm, to expand its work with U.S. government agencies in defence, cyber-security and health care. Analysts called it "the deal we've been waiting for," but some wanted CGI to expand in the commercial sector.
"Roughly half our total revenue now comes from the U.S. and margins there are rapidly catching up with Canada's," CEO Michael Roach said after Wednesday's annual shareholders' meeting.
He said CGI has started off fiscal 2012 with $1.4 billion in new contracts, extensions and renewals, equal to 135 per cent of revenue, and an order backlog of $13.6 billion, up $578 million from a year earlier.
"The outlook is strong for the back half this year as many contracts signed last year kick in," he said, "and we're focused primarily on organic growth, debt reduction and holding the pace of share buybacks."
Read more: http://www.montrealgazette.com/business/looks+south+expansion/6088279/story.html#ixzz1pVHdseaD
CGI looks south for IT expansion
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