The Channel logo


By | Kat Hall 29th January 2015 10:44

Revenues dip at CGI Group: It was Obamacare that did it

Last year's contract win, that is. Profits are up, though

Revenue at Canadian outsourcer CGI Group dipped by four per cent in the first quarter of 2015 to $2.5bn (£1.7bn), compared with the same period in 2014.

Meanwhile earnings rose by 24 per cent to $236m (£156m).

CGI attributed its first-quarter revenue drop to a one-off spike from its Obamacare IT contract last year. The contract was taken away from group subsidiary CGI Federal in February 2014 following a botched rollout of the portal.

The US is the firm's biggest market, where it does 27 per cent of its business, followed by Canada at 15 per cent and the UK at 13 per cent.

In 2012 CGI made significant moves into the UK market when it snapped up Anglo-Dutch outsourcer Logica for £1.7bn.

The company singled out health, justice and utilities as strong markets for the UK.

Last year CGI won a £78m hosting tower contract with the Ministry of Justice.

For the first quarter, the firm's pipeline of contracts was $4.3bn (£2.9bn), double that of the same quarter last year. Michael Roach, CGI chief executive, said this reflects "improving market conditions".

According to CGI, it is the fifth-largest IT company in the world. The firm employs 68,000 people globally. ®

comment icon Be the first to post a comment! alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe