CGI partners with Posti to deliver digital messaging services that respond to fast-changing customer and security demands

Rhea-AI Summary

CGI and Posti Group have entered a 10-year strategic partnership to develop and deliver digital multichannel messaging services. The collaboration will empower Posti to respond more effectively to their customers' rapidly changing expectations, as well as future cybersecurity and operational security requirements. CGI will partner with Posti to modernize the digital messaging technology and transfer 88 professionals who are based in Finland, Poland, Latvia, and Estonia. The partnership ensures digital solutions that are critical for supporting multi-channel messaging at Posti, improving the offering and services, and the security of communication. CGI helps logistics firms worldwide drive business transformation through IT modernization, Internet of Things, digital insights, cybersecurity, and other advanced technologies.

Insights

Market Research Analyst

The strategic partnership between CGI and Posti Group marks a significant development in the logistics and digital services sector. This collaboration is poised to enhance Posti's customer service capabilities through the modernization of digital messaging technology. From a market research perspective, the deal could potentially lead to increased market share for both companies, as they leverage each other's strengths to innovate and improve service offerings.

Moreover, the transfer of 88 professionals indicates a strategic realignment of talent that could bolster CGI's service delivery. This move may also reflect on CGI's competitive positioning in the industry, as it is indicative of their commitment to investing in human capital and the expansion of their expertise in digital services.

For stakeholders, the long-term nature of the agreement (10 years) suggests a stable and committed partnership that should provide consistent revenue streams and potential growth opportunities. This is crucial in an industry where long-term contracts can signify reliability and trustworthiness to clients.

Cybersecurity Expert

The emphasis on cybersecurity and operational security requirements within the partnership highlights the growing importance of these factors in the logistics and delivery industry. As cyber threats become more sophisticated, the need for secure digital messaging services is paramount. This partnership indicates CGI's capability to address these security concerns, which could provide a competitive edge in attracting clients who prioritize data protection.

From a cybersecurity standpoint, the modernization efforts in digital messaging could also set new industry standards for secure communications. This is especially relevant given the sensitive nature of the data typically handled by logistics providers, such as personal customer information and transaction details.

Financial Analyst

Financially, the partnership could be seen as a strategic investment for both CGI and Posti Group. For CGI, the agreement could lead to diversification of revenue streams and an increase in long-term financial stability due to the decade-long commitment. The financial implications for Posti Group could include cost savings from outsourcing the digital messaging services and potentially improved profitability from enhanced service offerings.

Investors should note the potential for CGI to realize economies of scale by integrating the 88 professionals into their operations, which could improve margins over time. The strategic partnership may also lead to synergies that can enhance both companies' operational efficiencies, which is often a key driver of stock performance in the technology and logistics sectors.

Stock Market Symbols
GIB (NYSE)
GIB.A (TSX)
www.cgi.com/newsroom

MONTRÉAL, Jan. 30, 2024 /PRNewswire/ - CGI (NYSE: GIB) (TSX: GIB.A) and Posti Group, the leading delivery and logistics services provider in Finland, Sweden, and the Baltics, have entered a 10-year strategic partnership for the development and delivery of digital multichannel messaging services. Through the agreement, Posti will partner with CGI on production of these services, and transfer 88 professionals who are based in Finland, Poland, Latvia and Estonia. In addition, CGI will partner with Posti to modernize the digital messaging technology. The collaboration will empower Posti to respond more effectively to their customers' rapidly changing expectations, as well as future cybersecurity and operational security requirements. 

"Based on our earlier collaboration with CGI in other areas, such as software robotics and payroll services, we are aware of and confident in CGI's digital service production expertise and quality," said Kimmo Salakka, Vice President of Strategy, Offering, and IT at Postal Services, a business group within Posti Group. "The agreed partnership ensures digital solutions that are critical for supporting multi-channel messaging at Posti. This is also significant news from a customer and consumer point of view, as the offering and services and the security of communication will improve. CGI is a company we can trust to deliver the new digital messaging solutions we require, as well as to treat our 88 transitioning professionals with exceptional care." 

"We are pleased with Posti's trust in our capabilities, as well as with the highly skilled Posti professionals who are transitioning to CGI and will subsequently benefit from a wide range of opportunities for developing their skills and careers, along with highly competitive benefits, including the best share purchase program in our industry," said Leena-Mari Lähteenmaa, President of CGI´s operations in Finland, Poland and Baltics.

"Digital messaging touches everyone," she continued. "For Posti customers, it appears in shipment notifications, applications for services, invoices, and so much more. Digital messaging must be reliable and secure, as well as free of interruptions. Through our digital messaging and technology modernization services, , enabling it to provide better customer service, strengthen security, and position itself for future growth."

CGI helps logistics firms worldwide drive business transformation through IT modernization, Internet of Things, digital insights, cybersecurity, and other advanced technologies—enabling them to meet customer demands, drive efficiencies, and save costs.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,500 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2023 reported revenue is C$14.30 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

About Posti

Posti is the leading postal and logistics services company in Finland, Sweden, and the Baltics. Its core business includes packages, freight, postal services, and logistics solutions. The company operates in seven countries, and its goal is to provide fossil-free transport by 2030. Turnover for Posti in 2022 was EUR 1,651.6 million, and the company has approximately 20,000 employees. Learn more at www.posti.com.

Forward-looking information and statements

This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions by 2030, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's annual MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

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SOURCE CGI Inc.

FAQ

What is the strategic partnership between CGI and Posti Group about?

The strategic partnership between CGI and Posti Group is about developing and delivering digital multichannel messaging services to empower Posti to respond more effectively to their customers' rapidly changing expectations, as well as future cybersecurity and operational security requirements.

How long is the duration of the partnership?

The partnership is for 10 years.

What will CGI do as part of the partnership?

CGI will partner with Posti to modernize the digital messaging technology and transfer 88 professionals who are based in Finland, Poland, Latvia, and Estonia.

What benefits does the partnership bring to Posti?

The partnership ensures digital solutions that are critical for supporting multi-channel messaging at Posti, improving the offering and services, and the security of communication.

How does CGI help logistics firms worldwide?

CGI helps logistics firms worldwide drive business transformation through IT modernization, Internet of Things, digital insights, cybersecurity, and other advanced technologies.