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State of California extends agreement with CGI for the Case Management, Information and Payrolling System

1. CGI secures a US$200-million contract extension with California for managed services. 2. Contract will enhance efficiency and security for caregiver payment systems. 3. CGI's system processes over 1.5 million payroll payments monthly, costing $19 billion annually. 4. Improvements include cloud modernization and AI-driven insights for service delivery. 5. CGI's ongoing collaboration illustrates their critical role in California's IHSS modernization.

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Why Bullish?

The contract extension indicates sustained revenue growth and operational stability. Similar past contract renewals resulted in stock appreciation with higher predictability of future earnings.

How important is it?

The contract reflects CGI's essential role and influence in a major state-funded program. This enhances CGI's reputation, thereby positively influencing investor sentiment and stock performance.

Why Long Term?

The multi-year contract will ensure recurring revenue, supporting long-term growth. Historical contracts in similar sectors show benefits often last beyond the immediate contract period.

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Stock Market SymbolsGIB.A (TSX)GIB (NYSE)cgi.com/newsroom Enhancements to improve efficiency, security, and accessibility for the state's caregiver payment platform , /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the world's leading independent technology and professional services firms, today announced a three-year, US$200-million contract extension with the State of California. Under the agreement, CGI will continue delivering end-to-end managed services for the Case Management, Information and Payrolling System (CMIPS), which supports California's In-Home Supportive Services (IHSS) program. The program provides essential care to over 850,000 recipients and employs more than 760,000 caregivers. As a trusted technology partner, CGI has consistently delivered high-quality solutions to improve the IHSS program. The continued collaboration with the California Department of Social Services (CDSS) has led to improvements in several key areas: streamlined payroll and case management processes, reduced administrative overhead, strengthened security, and improved service delivery for caregivers and those they serve. CGI will maintain its delivery of comprehensive business process outsourcing (BPO) and IT services, supporting the efficiency, security and accessibility of IHSS payroll processing for caregivers and beneficiaries across the state. Since its inception, CGI's partnership with the state has driven significant advancements in digital transformation, including migrating legacy infrastructure to the cloud, digitizing timesheets and W-2s, and introducing DevOps automation to improve system reliability and speed. The system processes over 1.5 million payroll payments each month, totaling more than $19 billion annually, ensuring that caregivers across California receive timely and accurate compensation while families get the support they need without administrative barriers. "The multi-year contract renewal with the State of California reflects the vital role CGI plays in modernizing the state's IHSS care infrastructure," said Virginia Williams, Senior Vice-President & Business Unit Leader, U.S. Northwest Operations at CGI. "Our shared roadmap focuses on cloud modernization, AI-powered insights, multilingual mobile experiences, and agile responses to new legislation. We're proud to help strengthen the program so caregivers and those they support receive the efficient, reliable services they deserve." About CGIFounded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 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 2024 reported revenue is CA$14.68 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com. SOURCE CGI Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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