Yellow Pages today announced a 10-year IT outsourcing deal — valued at $160 million – with CGI.
As per the technology outsourcing deal, Yellow Pages will outsource some of its IT operating infrastructure and platform management to CGI. Yellow Pages will transfer 119 IT positions – mainly in Montreal — to CGI.
Yellow Pages will retain responsibility for its strategic IT development as well as management and development of all digital applications and services related to the company’s core business of providing digital media and marketing solutions for businesses.
Mark Boyajian, president, Canada operations of CGI, said: “Our focus will be on driving significant improvements and cost savings across its IT operations, in order to invest more resources into the continued growth of their digital business.”
Yellow Pages provides media and marketing solutions to over 240,000 small business customers across Canada. Over 68 percent of its revenues come from digital products and services or roughly $550 million in digital-only revenues on an annualized basis.
Ryan Blanchard, research analyst at TBR, recently said that CGI rounded out its fiscal year in CY3Q16 posting annual revenue growth of 3.9 percent to $10.7 billion in Canadian dollars (CAD); however, annual revenue declined 3.9 percent to $8 billion in U.S. dollars (USD).
CGI continues to invest in developing its IP base and garnering domain expertise to help improve its market perception and posture itself as a Tier 1 provider of digital transformations. In early November CGI announced its acquisition of Boston-based Collaborative Consulting, augmenting its high-end consulting capabilities geared toward financial services, life sciences and public sector markets while expanding its onshore delivery network.
CGI remains dedicated to its global diversification as it secures numerous contracts outside of North America and develops its international workforce.
During the quarter the company announced numerous large-scale contract awards with clients based outside of North America, including engagements with Sweden-based Eltel, the U.K. Ministry of Defence and France-based Solvay.
