CGI (NYSE: GIB) (TSX: GIB.A) has signed an agreement with Toyota Material Handling Europe (TMHE), a global leader in truck manufacturing and material handling, for the outsourcing of the company’s entire IT operations. Under the agreement, a majority of employees from TMHE’s IT department will be rebadged to CGI. The contract has an estimated value of 230 million SEK (approximately CAD $37 million) for five years.
The company’s main purpose in outsourcing is to free up additional resources for business development. Cost savings, quality improvements and access to expertise and innovation from an experienced IT partner are other motivating reasons.
CGI has been given responsibility for TMHE’s data center, as well as its application management, service desk, email, network, collaboration, storage and security services. In addition, CGI will deliver its standardized IT services for workplaces for approximately 6,000 users in Europe.
“We were looking for a strategic and innovative partner and selected CGI because of its experience with similar projects and its ability to improve our IT on a continuous basis,” said Johan Kroon, CIO, TMHE. “Another crucial factor is CGI’s HR strategy and processes for transferring personnel. In addition, increased cost control and the transit to more flexible capacity services will result in better quality and lower costs for our customers.”
“We are pleased with the confidence TMHE has placed in us to provide a broad spectrum of IT services and look forward to having a continuous dialogue about new ideas to develop and streamline its IT operations,” said Pär Fors, Senior Vice President, CGI, Sweden. “TMHE’s choice of CGI as its outsourcing partner is proof that our outsourcing services are well in line with current market needs and expectations.”
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, 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$19 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.
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