$7 million facility will create as many as 400 new American jobs providing affordable, high-quality IT services to government and commercial clients
BELTON, TEXAS--(Marketwire - April 11, 2012) - Gov. Rick Perry joined George Schindler, President of CGI's U.S. operations, and local political and community dignitaries to break ground on a 40,000-square-foot, state-of-the-art Onshore IT Services Delivery Center here today. CGI Group Inc. (NYSE:GIB)(TSX:GIB.A), a leading provider of information technology and business process services, began operations in Belton in November and now has more than 35 employees operating out of temporary space. When fully staffed, the new facility will make CGI the largest private employer in the community. CGI's Belton Onshore IT Services Delivery Center will create 350 new jobs, with a target of up to 400 new jobs, and generate an estimated $61 million of annual economic impact within the first five years of operation.
"Texas has always been a bold leader in new and developing technologies, and our steadily-growing high-tech economy and commitment to our returning veterans makes us a natural fit for CGI's latest expansion," Gov. Perry said. "The skills our veterans bring back from service are a valuable resource for our communities and our labor force, and CGI's presence here in Belton and close proximity to Fort Hood will enable many veterans to resume their careers or start new ones, while strengthening and expanding our state's economy."
"We believe we found the 'best of the best' here in Belton. This facility builds upon CGI's commitment to Texas, broadening our reach to Belton, Bell County, and the Greater Fort Hood area, meaning more jobs and opportunities in the region - including for our returning veterans and their families," said George Schindler, President of CGI's U.S. operations. "Onshore IT Services Delivery Centers like this one expand our ability to offer high quality, cost-effective services to our clients on-shore in the U.S. while making it possible for U.S. companies in all industries to keep their IT operations here at home. That's a win-win-win for our company, our customers, and America."
Belton is CGI's third Onshore IT Services Delivery Center. The first two centers, in Lebanon, Virginia, and Troy, Alabama, today employ a total of more than 650 employees, with plans for 100 additional jobs through the end of this year. CGI is making a $7-million capital investment to build the Belton facility.
"This new facility is a major milestone in the solid partnership between Belton, the state of Texas, and CGI," said Belton Mayor Jim Covington. "This is the culmination of hard work from so many across the Central Texas Region, and we are excited to see it moving forward."
"Our community's quality of life, skilled and diverse workforce and central location has put us in a great position to be a long term partner with CGI," said Chris Moore, President of the Belton Economic Development Corporation, who emceed today's ceremony. "Hundreds of new CGI jobs in Belton will be a catalyst for economic development in our community. We are proud to have recruited this company and we are thrilled to see this partnership moving forward as planned."
In May 2011, Forbes magazine named the Killeen-Temple-Fort Hood community, where Belton is located, "the No. 1 small city" for jobs in the United States. CGI selected Belton because of its access to talent, quality of life, proximity to Fort Hood, collaboration with business-friendly state and local governments, and strong partnerships with institutes of higher learning.
Today's ceremony included the presentation of a $180,924 grant to CGI from the Texas Skills Development Fund Grant by Andres Alcantar, incoming chairman of the Texas Workforce Commission.
CGI's Belton Onshore IT Services Delivery Center is made possible with the support of the Texas Governor's Office, the Belton Economic Development Corporation, the City of Belton, Bell County, and partnerships with Texas colleges and universities, including Temple College, the University of Mary Hardin-Baylor, Central Texas College, and Texas A&M University Central Texas. The center will draw on skilled local talent from a feeder system of colleges and universities as well as active recruitment of veterans and military family members, especially from the Fort Hood community.
U.S. onshore delivery is part of a business strategy to invest in small U.S. communities that offer access to quality workforce, quality of life, strong economics and partnerships with state and local government, academia, and industry.
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI provides end-to-end IT and business process services to clients worldwide with approximately 31,000 professionals located in offices and centres of excellence in Canada, the United States, Europe and Asia Pacific. As at December 31, 2011, CGI's annualized revenue was approximately $4.1 billion and its order backlog was approximately $13.6 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in both the Dow Jones Sustainability Index and the FTSE4Good Index. 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, and are "forward-looking information" within the meaning of Canadian securities laws. These statements and this information represent CGI'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 or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI's annual and quarterly Management's Discussion and Analysis ("MD&A"), in CGI's Annual Report, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), 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 or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.