State of Colorado selects CGI for payroll system modernization, empowering 33,000 state employees with enhanced efficiency

Rhea-AI Summary

CGI (NYSE: GIB), a leading IT and business consulting services firm, has been chosen by the State of Colorado to modernize its payroll operations with the CGI Advantage® ERP platform. This initiative aims to boost the efficiency and user experience for 33,000 state employees. The platform will provide a unified ERP system, enhanced security, and lower maintenance costs for Colorado's payroll systems. This project supports CGI's ongoing relationship with Colorado, where it already offers financial, procurement, and performance budgeting solutions. According to John Manta, Senior Vice-President at CGI, the modernization also includes plans for continuous investment in new technologies to meet citizen expectations and improve state organizational efficiency.

Positive

• CGI selected to modernize Colorado's payroll system, enhancing efficiency for 33,000 state employees.
• CGI Advantage® ERP platform to provide enhanced security and lower maintenance costs.
• Ongoing investment in new technologies to improve user experience and meet citizen expectations.

Negative

• None.

Insights

Financial Analyst

CGI's selection by the State of Colorado for the payroll system modernization project has potential implications for the company's financial health. The deal indicates a new revenue stream for CGI and could positively contribute to the company's top line.
Given that CGI is already a trusted partner in delivering financial, procurement and performance budgeting systems within Colorado, this new project likely solidifies and extends an already lucrative relationship. This kind of sustained engagement with a governmental entity generally ensures stable, recurring revenue over the contract period.

An important takeaway for investors is the reduced risk associated with such government contracts, as they often come with long-term commitments. Additionally, the modernization project could lead to upselling opportunities in other related services for CGI. Long-term revenue stability from government contracts could positively influence the stock's valuation.

Tech Expert

From a technical perspective, CGI Advantage®—the platform to be used in this project—offers a comprehensive, modern ERP solution. This platform's enhanced security and modern architecture not only promise to lower maintenance costs but also mitigate risks associated with outdated systems.
The implementation of CGI Advantage could serve as a blueprint for similar modernizations in other states, showcasing CGI's capability to handle complex, large-scale ERP integrations. This is particularly relevant in an era where cybersecurity and operational efficiency are paramount.
For investors, it's important to recognize that successful deployments could open the door to further expansion in public sector contracts across different states or even internationally.

Stock Market Symbols
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cgi.com/newsroom

DENVER, July 9, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, today announced its selection by the State of Colorado for the modernization of payroll operations using CGI Advantage^®, CGI's industry-leading enterprise resource planning (ERP) platform. CGI Advantage will improve efficiency, strengthen the user experience and provide innovative solutions that will enhance outcomes for 33,000 state employees across all branches of the state government.

CGI currently delivers CGI Advantage Financial, Procurement and Performance Budgeting in Colorado. With CGI Advantage, state payroll systems and administrators in Colorado will benefit from a fully unified ERP, enhanced security, and modern architecture that lowers maintenance costs and risk.

"With CGI Advantage, Colorado receives not only this vital payroll upgrade, but a roadmap that includes continued investment in new technologies and a modernized user experience that enables new, innovative ways to meet citizen expectations, drive efficiency and grow capacity in state organizations," said John Manta, Senior Vice-President, Consulting Services leading CGI's U.S. Midwest operations.

About CGI Advantage
CGI Advantage is a unified ERP platform featuring a powerful combination of modern technology and built-for-government solutions. This secure, intuitive platform organically meets state and local government requirements and streamlines financial management, human resources, performance budgeting, procurement, and business intelligence operations. A proven solution, CGI Advantage is based on more than 46 years of public sector expertise and is supported by an active client community that values innovation and access to CGI's global network of experts. Learn more at cgi.com/advantage.

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,000 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 CA$14.30 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

View original content:https://www.prnewswire.com/news-releases/state-of-colorado-selects-cgi-for-payroll-system-modernization-empowering-33-000-state-employees-with-enhanced-efficiency-302191611.html

SOURCE CGI Inc.

FAQ

What company was selected to modernize Colorado's payroll system?

CGI (NYSE: GIB) was selected to modernize Colorado's payroll system.

How many state employees will benefit from the CGI payroll modernization?

33,000 state employees will benefit from CGI's payroll modernization.

What ERP platform will CGI use to enhance Colorado's payroll system?

CGI will use its CGI Advantage® ERP platform to enhance Colorado's payroll system.

What are the expected benefits of the CGI Advantage® platform for Colorado's payroll system?

The CGI Advantage® platform is expected to enhance efficiency, improve user experience, and provide better security with lower maintenance costs.

What other services does CGI currently deliver in Colorado?

CGI currently delivers financial, procurement, and performance budgeting services in Colorado.