Cgi History

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_experience the commitment
Our history
Founded in 1976, CGI has evolved into a leading IT and business process services
provider. Our 30-plus years of continuous profitable growth is a testament to the
confidence our clients place in us, to the commitment of our members, and to the sound
business model and sustaining principles on which we were founded.
1976-1986
Serge Godin founded CGI in Québec City, Canada, in June 1976. A few months later, André Imbeau
joined him and together they committed themselves to build a company based upon a shared dream: "To
create an environment in which we enjoy working together and, as owners, contribute to building a
company we can be proud of."
The name “CGI” is the French acronym for “Conseillers en gestion et informatique,” which means
information systems and management consultants. In English, the acronym stands for “Consultants to
Government and Industry.”
In CGI’s first 10 years, the growing team of highly qualified professionals joining CGI helped craft the
company’s principles and beliefs. These have since been documented within the CGI Constitution, which
encompasses our dream, mission, vision and values.
CGI’s business strategy was, and remains today, tightly linked to the following: helping our clients
achieve success, sustaining long-term growth, and providing fulfilling career opportunities for our
professionals. This strategy requires creating a financially sound environment in which all key
stakeholders—clients, members and shareholders—prosper.
From the outset, a performance-based management and monitoring system for all functions was put in
place to ensure that opportunities could be identified and addressed quickly. Strong and accountable
leaders with the right level of empowerment allowed the company to expand rapidly.
During this period, the IT services market was in its infancy. Demand for IT services evolved to include
new types of requirements, including fixed-price and systems integration contracts. CGI evolved from a
consulting company to a consulting and systems integration company.
Near the end of this decade, our targeted clientele began to consider and, in many cases, chose to
outsource their IT functions. CGI responded by preparing a strategy to enter the emerging outsourcing
market.
1986-1996
In 1986, CGI began to acquire outsourcing companies. At that time, CGI’s annual revenue was $25
million, and the first acquired company (BST) had an annual revenue of $8 million. To finance the
transaction, CGI became a public company, issuing 800,000 Class A subordinate voting shares at an
opening price of $6.50.
With this acquisition, CGI was in a position to offer the full continuum of IT services—technology and
management consulting, systems integration and IT outsourcing.
© DECEMBER 2009 CGI GROUP INC.

A few years later, client consultations with CEOs, CFOs and operation leaders identified two key trends:
business processes services (BPS) and globalization. CGI responded by expanding into geographies
where clients’ operations were located and by developing strategies to grow and acquire BPS operations.
In 1992, the initial version of the CGI Management Foundation was created to serve as the backbone for
all management frameworks, policies and guidelines. The CGI Management Foundation ensures the
alignment of management principles and decision making to achieve balance between the interests of
CGI’s key stakeholders. This allowed CGI to make sound business decisions and to continue to grow
healthily.
Throughout our evolution, CGI has maintained a steadfast focus on delivering quality services to our
clients. To demonstrate this commitment, we sought external recognition of our quality assurance efforts.
In 1994, CGI became the first IT consulting firm in North America to comply with the internationally
recognized ISO quality standard. CGI earned ISO 9001 certification for our project management
framework. This certification has since evolved to include all management frameworks pertaining to CGI’s
partnership with key stakeholders.
Management attention was concentrated on growing and consolidating the capabilities of the company
while remaining financially healthy. By the end of fiscal 1996, CGI’s annual revenue had grown to
$122 million.
1996-2006
By this period our target clientele was comprised of the world leaders of their respective industries. To
help these clients win and grow required local critical mass in key regions, a deep knowledge of their
business sectors, proven solutions and specialized practices. CGI continued to evolve to respond to
these business demands.
With the IT industry rapidly maturing, globalization and consolidation became key characteristics of this
period. Faithful to a commitment to long-term, independent viability, CGI was positioned to be one of the
IT and BPS industry consolidators.
Executing on CGI’s “build and buy” growth strategy became the focus during this period of expansion.
That strategy, which continues today, aims to meet client requirements and achieve growth targets
through the following:
 Build: Growth through new business generated from existing and new clients
 Buy: Growth through acquisitions that are strictly contingent on strategic fit, synergies and a positive
financial contribution
The following are the major acquisitions that significantly changed CGI’s size and presence in key
geographies:
 In 1998, CGI’s merger with Bell Sygma led to the signing of the largest Canadian outsourcing contract
of that time, nearly doubling the size of the company.
 In 2001, CGI acquired IMRGlobal to add Indian operations to our portfolio, providing clients with
expanded global delivery options.
 In 2004, CGI acquired American Management System (AMS). This transaction doubled the size of
CGI in the United States and tripled the size of our presence in Europe.
From an IT industry point of view, two significant events known as the “Y2K bug” and the “Internet
bubble” influenced the business dynamics of this period. Anchored on ethical and sound business
principles and values, CGI continued to grow steadily and profitably throughout these events and more
importantly in their aftermath.
By the end of fiscal 2006, CGI’s annual revenue reached $3.5 billion.
www.cgi.com
2006 – Present
Today, with a presence in more than 100 offices worldwide and strong capabilities in all of our target
markets, CGI continues to strive to be recognized by clients, members and shareholders as a world class
IT and business process services (BPS) leader. While remaining true to our Constitution, CGI continues
to adapt to best respond to changes in the IT market, the local and global business climate of clients, and
to our professionals’ expectations.
The future…
As demonstrated by our performance, CGI is focused on running a sound and stable business for the
long term.
For CGI, global growth is not an option; it is a necessity. As markets globalize, so do our clients. We are
dedicated to growing and expanding our capabilities to serve our clients as they increase their size and
reach.
As demonstrated by our history, CGI is committed to helping clients win and grow; providing our
professionals with rewarding careers; and offering shareholders superior returns over time.
www.cgi.com

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TM

_experience the commitment

© DECEMBER 2009 CGI GROUP INC.

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