California's Enterprise Data to Revenue project exceeds revenue target, on track to generate $2.9 billion goal in 2016
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FAIRFAX, VA, Aug. 25, 2016 /CNW Telbec/ - CGI (NYSE: GIB) (TSX: GIB.A) today announced successful implementation of the Enterprise Data to Revenue project for the California Franchise Tax Board (FTB), which has collected $2.6 billion toward a goal of $2.9 billion in revenue during the state's five-year FTB modernization project.
"The EDR program is transforming California's tax administration operations, providing better tax collection services, reducing taxpayer burden, and reducing the state's tax gap — the difference between what is owed and what is collected," said Dave Delgado, Senior Vice-President, CGI. "CGI's innovative solution allows the state to take a centralized approach to tax collection activities, gives California Franchise Tax Board personnel a single payer view for resolving collections issues, and uses powerful workflow and analytics capabilities to enhance operational productivity and performance effectiveness."
Currently in year five of a multi-year contract with the FTB, CGI's solution has achieved a fundamental improvement of the Board's customer service, revenue generation capacity and organizational transparency. Enhancements include a simplified view of FTB folders and systems that enable taxpayer self-service, and strengthened data management and business rules management for accurate processing of more than 16 million personal income tax forms each year.
With CGI in the role of lead contractor, FTB modernization has consistently met its schedule while surpassing revenue projections. Just 15 months after work began, the project generated more than $128 million – 81 percent above target. In July 2014, EDR recoveries topped $1 billion, a milestone achieved 10 months ahead of schedule.
"The EDR project success is not a fluke," said Cathy Cleek, FTB CIO. "The CGI team has been successful due to strengths in five key areas. These include planning and phasing the project; effective processes including risk management; teaming with the FTB staff; use of modern technology tools and optimizing the solution for success and taxpayer needs."
Utilizing CGI's unique and highly successful "benefits-funding" model, California's FTB modernization is a fixed-price, performance-based project in which no monies are paid to CGI until state revenue is generated.
In 2012, CGI received the Center for Digital Government "Best Fit Integrator" Performance and Modernization Award for its work on behalf of the FTB.
"CGI's partnership with California FTB is built upon best practices in terms of governance, project management and risk mitigation," said Delgado. "It exemplifies what is possible when there is a shared commitment to effective planning, detailed business analysis, internal team cohesion, incremental risk mitigation and joint contingency planning. These and other success factors have led to the outstanding results realized for the State of California during this complex, multi-year IT modernization."
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 65,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as 150 IP-based services and solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of Canadian securities laws. These statements and this information represent CGI's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI's annual and quarterly Management's Discussion and Analysis ("MD&A"), in CGI's Annual Report, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.
SOURCE CGI Group Inc.
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