National Bank and CGI bring enhanced payroll services to the bank's corporate clients
The National Bank of Canada (TSX: NA) and CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB;), today announced the signing of a 10-year commercial agreement to provide payroll services to National Bank corporate clients. With this new agreement, the National Bank, under their brand, will market payroll services to its clients. CGI remains responsible for creating, maintaining, hosting and managing the back office for the business processing of the bank's 8,000 payroll clients. CGI will be streamlining the current systems offering an enhanced, state- of-the-art infrastructure allowing businesses to benefit from a reduction in costs and gain administrative efficiency. Moving forward, CGI will continue to invest in R&D for payroll services. This agreement does not translate into incremental annual revenue for CGI. However, as it is a 10-year deal, CGI estimates that it increases its backlog for the same activities from CDN$25 million to $200 million.
"Our goal as a financial services partner is to help our corporate clients grow their businesses. By providing them with tools that can help automate business processes that are not core to their business we are fulfilling our mandate. Payroll is one such area. Through payroll services, our clients can, for example, have their staff paid by direct deposit. Also, they do not have to worry about tax time paperwork," said Tony Meti, senior vice-president, corporate and international services of the National Bank.
Michael Roach, CGI's president and chief operating officer added: "We are very pleased to expand our relationship with the National Bank. We feel confident that our payroll solutions provide great advantages for companies.
Today, close to 18,000 businesses are relying on CGI for their payroll processing. It is one of the fastest growing areas within the BPS space as companies strive to obtain increased productivity at a lower cost in less time."
About the National Bank of Canada
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. The National Bank has assets of over $82 billion and, together with its subsidiaries, employs close to 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank's website at www.nbc.ca .
Founded in 1976, CGI is among the largest independent information technology and business process services firms in North America. CGI and its affiliated companies employ approximately 20,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe and centers of excellence in India. CGI's annualized revenue run rate is currently CDN$2.8 billion (US$2.1 billion) and at December 31, 2003, CGI's order backlog was CDN$12.2 billion (US$9.3 billion). CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com .
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements represent CGI Group Inc.'s intentions, plans, expectations, and beliefs, and are subject to risks, uncertainties, and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements.
These factors include and are not restricted to the timing and size of contracts, acquisitions and other corporate developments; the ability to attract and retain qualified employees; market competition in the rapidly- evolving information technology industry; general economic and business conditions, foreign exchange and other risks identified in the Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s Annual Report or Form 40-F filed with the SEC, the Company's Annual Information Form filed with the Canadian securities authorities, as well as assumptions regarding the foregoing. The words "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", and similar expressions and variations thereof, identify certain of such forward- looking statements, which speak only as of the date on which they are made. In particular, statements relating to future revenue from outsourcing contracts are forward-looking statements. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements. %SEDAR: 00002790EF
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