CGI doesn't generate make-believe worlds, but rather real-life worldwide IT services. The company is the leading technology services consultancy in Canada and one of the largest IT services providers in North America. Its services include systems integration, technology consulting, and business process outsourcing (BPO). CGI serves clients in the financial services, health, manufacturing, retail, distribution, telecom, and utilities industries; it also has public sector customers. CGI does more than half of its business in Canada. Key facilities are located in North America, but operations span more than 125 offices across 15 countries. Chairman and founder Serge Godin controls more than 50% of the company.
The company operates in a vigorously competitive industry where it has to contend with both Canadian rivals and global giants, such as Dell, Hewlett-Packard, and IBM, that have IT services as a key part of their portfolios. Steady revenue and profit growth has come from a competitive strategy that includes an independence from hardware manufacturers and a specialized expertise in the chosen industries it serves. Another key contributor is a delivery model that strives for a nimble, cost-effective combination of onshore, offshore, and nearshore methods with offices in its customers' regions. For growth, the company looks both internally and externally, pursuing a "build and buy" strategy.
Among its "buy" efforts has been the purchase in 2012 of UK-based IT services provider Logica plc for about £1.7 billion ($2.6 billion). The acquisition expanded CGI's global presence -- particularly in the Americas, Europe, and Asia -- but also allowed the company to improve its global delivery through client proximity, offer full IT services supply chain coverage, and bring in valuable intellectual property.
To expand its business in the US and boost overall sales by more than 40%, CGI acquired government IT services contractor Stanley for nearly $925 million in cash in 2010. The company made Stanley part of its CGI Federal division. Including the assumption of Stanley's debt, the transaction was valued at nearly $1.1 billion. Stanley primarily served agencies of the US Department of Defense, and its acquisition bolstered CGI's expertise in defense and intelligence areas such as cybersecurity and biometrics. Revenue from US federal government customers makes up more than 10% of total CGI sales.
In conjunction with its services, the company offers business automation software, including Momentum and AMS Advantage (enterprise resource planning for US state and federal governments) and PrimeSuite (wealth management for financial services providers in Canada). – less