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FAIRFAX, VA, Sept. 23 /CNW Telbec/ - Stimulating the economy, keeping
jobs in the U.S. rather than abroad and managing security risks are three of
the biggest issues facing America today. Two studies released today by the CGI
Coalition for Mission Results, a public policy initiative formed earlier this
year between CGI (NYSE: GIB; TSX: GIB.A), and major academic institutions,
outline a multi-faceted strategic plan devised to address job creation and the
IT workforce in the U.S.
With the economy in flux and the current unemployment rate at 6.1 %, new
high-quality U.S. jobs are needed in rural communities as Americans struggle
with continuing job loss. The studies suggest that the onshoring business
model, through public-private partnerships, can provide significant economic
stimulus in rural communities through the creation of lasting, high quality
jobs in America's rural hometowns and give young people the opportunity to
work and stay in the communities where they grew up.
CGI, one of the largest independent information technology and business
process services firms in the world, has used technology, and onshoring in
particular, to help clients address today's business challenges. At the
Democratic National Convention, former Gov. Mark Warner referenced CGI's
Southwest Virginia Center of Excellence in Lebanon (Russell County) as a model
for onshoring where 300 high-tech jobs were created that paid twice the county
"To better serve our clients, CGI sought to create cost-effective, high
quality alternatives to offshoring," said Donna Morea, President, CGI, U.S.
"Information technology is our newest national resource. High quality jobs
with proximity to clients create enhanced productivity and value for all of
our stakeholders while supporting our rural communities across the country,"
Onshoring helps manage security risks in the world of global IT services
delivery. When sensitive IT solutions and infrastructure are kept in the U.S,
there is less risk of overseas exposure to national security issues.
Additionally, while offshore outsourcing can generate cost savings of 20-40%
for applications projects compared to major U.S. cities, domestic onshoring in
mid-sized cities and rural areas can generate 30% savings, according a July
2007 report published by the Information Technology Association of America.
The first study, Securing America's Future: Tools for Achieving U.S.
Technology Independence and Job Growth, authors Dr. Lester Salamon Founding
Director and Principal Research Scientist, Institute for Policy Studies, at
Johns Hopkins University, and George Schindler, President of CGI Federal,
outline the challenges facing the U.S. in achieving technology independence
and job growth and recommend ways in which the government can respond to those
"The past two decades have witnessed a significant outsourcing of not
only low-skill production jobs,but more importantly the outsourcing of
high-quality, skilled jobs in IT," said Salamon. "This is not only an economic
concern, but it has become a matter of special urgency in light of the
security issues posed by having critical national intelligence and business
information handled overseas."
According to the studies, U.S. IT companies average an ongoing inventory
of 470 job openings for skilled positions, while technology companies focused
on defense specifically average more than 1,200, according to the National
Foundation for American Policy's March 2008 report "Talent Search: Job
Openings and the Need for Skilled Labor in the U.S. By actively growing
domestic IT capacity, the U.S. can stimulate rural growth and help to keep
these jobs at home, and possibly even bring jobs back that had been sent
The second study, Creating Jobs in America: Case Studies and
Recommendations for Local Job Development, authored by Dr. Darrene Hackler,
Associate Professor, Department of Public and International Affairs at George
Mason University, examines case studies of how U.S. private sector companies
are using onshoring as an effective economic development tool in local
Hackler addresses how localities can experience economic growth in terms
of jobs and tax revenues with private sector investments from companies
located in traditional urban centers that are considering low-cost domestic
locations instead of global offshoring.
Additionally, the study examines economic development potential and
impact of onshoring in order for communities to experience sustainable
development that leads to competitiveness and further upgrading of the local
economy. It presents four case studies of how communities throughout the U.S.
are making this happen. One case study describes how CGI invested in a
U.S.-based technology center to foster a rural economic transformation. CGI's
Southwest Virginia Center of Excellence in Lebanon is a model of how a
public-private effort can help revitalize an economically depressed community
while protecting sensitive data and technology. Opened in 2007, this facility
is projected to generate in excess of $65 million in economic activity in the
region by 2010.Hackler also makes recommendations to public officials at the
local, state, and federal levels by detailing factors and policies that
support the development of onshoring opportunities.
Both studies are available online at www.coalitionformissionresults.org.
About the CGI Coalition for Mission Results
Launched in 2008, the mission of the CGI Coalition for Mission Results is
to analyze the top challenges facing government and industry, and to develop
new ideas regarding how technology can be applied to create solutions that
optimize business results. CGI has partnered with leading academic
institutions and subject matter experts to conduct research targeted at
specific challenges. Example partnerships include the CGI-GMU Initiative for
Collaborative Government (www.collaborativegov.org), a joint public policy
initiative with George Mason University, and research commissioned to
Dr. Lester Salamon, director of the Center for Civil Society Studies of Johns
About CGI Federal
CGI Federal (www.cgi.com\usfederal) is a wholly-owned U.S. operating
subsidiary of CGI Group Inc., dedicated to providing effective IT solutions
for federal government agencies by combining over 30 years of government
experience and technology skills. Founded in 1976, CGI Group Inc. is one of
the largest independent information technology and business process services
firms in the world. CGI and its affiliated companies employ approximately
27,000 professionals in over 100 offices across 16 countries. CGI provides
end-to-end IT and business process services to clients worldwide from offices
in Canada, the United States, Europe, Asia Pacific as well as from centers of
excellence in North America, Europe and India. CGI's annual revenue run rate
stands at $3.8 billion and at June 30th, 2008, CGI's order backlog was
$12.03 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB)
and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped
Information Technology and MidCap Indices. Website: www.cgi.com.
For further information:
For further information: Peter Cutler Director, Communications, (703)