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CGI - Data Center Outsourcing Services

Vendor Analysis

by NelsonHall Analyst

published on Jul 10, 2013

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Report Overview:

CGI's data center outsourcing (DCO) business grew largely organically as part of its IT services business. The growth came from taking over clients' data centers, such as John Hancocks in 2004, as part of bigger ITO deals. M&A activity, such as the merger with Bell Sygma in 1998, the acquisitions of IMRGlobal in 2001 and Logica in 2012, helped boost the business by expanding its scale and customer base for cross- and up-selling as well as presence in new geographies. Today, CGI offers capabilities from infrastructure services through to BPO.

Who is this Report for:

NelsonHall's Vendor Assessment of CGI's "Data Center Outsourcing" services provides a comprehensive view of the company's offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of data center outsourcing services and identifying vendor suitability
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the IT services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of CGI's data center outsourcing offerings, capabilities, and market and financial strength, including:

  • Identification of the company's service-specific strategy, emphases and new developments
  • Service-specific revenue estimates
  • Analysis of the company's offerings and key service components
  • Analysis of the company's approach to, and locations for, service delivery
  • Analysis of the company's strengths, weaknesses and outlook.

Key Findings & Highlights:

CGI's data center outsourcing business grew largely organically as part of its IT services business. The growth came from taking over clients' data centers, such as John Hancocks in 2004, as part of bigger ITO deals. M&A activity, such as the merger with Bell Sygma in 1998, the acquisitions of IMRGlobal in 2001, and Logica in 2012, helped boost the business by expanding its scale and customer base for cross- and up-selling as well as presence in new geographies. Today, CGI offers capabilities from infrastructure services through to BPO.

CGI targets IT infrastructure services, including data center services, within multi-year contracts. Its value proposition is to improve clients' operations through best practice and common tool sets across all its centers. CGI offers data center management services through a blended delivery model based on a combination of onshore, nearshore and offshore service delivery, and has >20 delivery centers around the world.

Although it will take on data center services without an end-user computing component, CGI does not often target end-user computing opportunities that do not also have a data center component. Overall, ~70% of CGI's infrastructure and data center contracts include end-user computing.

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