CGI helps companies contain costs without cutting staff

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As tech companies lay off staff, Canada’s CGI Inc is bucking the trend and is one of the few tech firms to retain its pandemic stock-market valuation

, a Canadian IT and business consulting services company. In some cases, they’re finding that they didn’t need the employees to begin with.

“They’re looking for efficiencies, because they got open positions they can’t fill,” Mr. Schindler said of CGI’s clients. “It’s actually pretty pronounced in government. We went to one government agency and basically said, ‘Look, we can automate this. We can do this as managed service.’ ” CGI shares gained 4 per cent to close at $118.71 in trading on the Toronto Stock Exchange on Wednesday. The stock has climbed about 70 per cent since March 20, 2020, when the World Health Organization declared COVID-19 a global pandemic.

The company is also winning new business and shoring up deals with existing clients. New bookings in the quarter included a 10-year pact with the U.S. State Department that will see CGI deliver U.S. visa application services in India and a new four-year deal with the British government to help it on cybersecurity.

 

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