Quarterly Update
published on Aug 15, 2016
Access to this report is restricted to logged in clients with access. Login to get full access
Report Overview:
NelsonHall’s Quarterly Update on CGI provides a snapshot of developments at CGI in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on CGI provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on CGI, looking at financial performance and key developments during the period.
Key Findings & Highlights:
- Q3 FY16 financial performance: first year of organic CC growth since Logica; margin expansion continues
- Topline growth was concentrated in two regions, both of which had a third consecutive quarter of CC growth
- U.S. revenues continue to be impacted by softness in the federal sector
- Increased utilization of global delivery by some geographies
- Margin impact of IP-based sales will become evident in near term
- Two large long-term IT outsourcing contracts in Canada dominate new bookings
- Acquisition intentions center on U.S. and U.S. Commercial; a “right price” transaction increasingly likely in U.K.