Organizations must accelerate their digital transformation finds 2016 CGI Global 1000 outlook

Technology evolving from an enabler to a driver of business change

Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom

MONTRÉAL, Aug. 4, 2016 /CNW Telbec/ - Global market trends are converging to accelerate the speed at which commercial and government organizations need to move from experimenting with discrete customer-facing digital projects to implementing enterprise-wide digital transformation. This is the overall finding of the CGI Global 1000, an annual outlook conducted by CGI (TSX: GIB.A) (NYSE: GIB) through in-person conversations with business and technology leaders in 10 industries and 20 countries.

"In this year's CGI Global 1000, we saw tremendous alignment around organizations' need to implement more expansive digital transformation by modernizing and connecting their legacy systems to a digital business and operating model," said CGI President and Chief Executive Officer Michael E. Roach. "We have not seen such clarity of market dynamics since Y2K, which was a system-centric, point-in-time event that did not create competitive business value. Today, there is a need to create sustainable business model change that will help organizations better run, change and grow over the next decade."

In the CGI Global 1000, organizations identified five key trends that are intensifying their need to transform:

1. Over 70% of leaders cite the rising influence of consumers' digital behaviors. Customers expect personalized and seamless digital experiences across channels, with banking, retail and consumer services, and communications leaders citing a digital-only trend.
2. Security is starting to become a differentiator for 62% of organizations. Organizations' cybersecurity programs are maturing from reactive and compliance-based to proactive and focused on integrating security into part of the value proposition.
3. Half of organizations across industries feel the burden of relentless regulatory demands. This perennial trend continues to accelerate, with leaders focused on material business impacts of privacy and data protection laws.
4. One-third of executives note structural change of their business models is needed. For the first time, leaders said they must transform the way their organizations are structured to serve their stakeholders and spur growth.
5. Nearly 30% of organizations are experiencing the emergence of IT as a driver of business change. Technology's role is shifting from being an enabler to a driver for achieving new business and operating models. Over 70% of leaders said they plan to increase or maintain their IT budgets to accelerate digital transformation.

As organizations address these global dynamics and start to implement more enterprise-wide digital efforts, over 70% of leaders noted that implementing change internally is their top challenge.

"This year represents a digital inflection point for many organizations," said Doug McCuaig, Executive Vice-President, Global Client Transformation Services, and the executive responsible for the CGI Global 1000 outlook. "The timeframe organizations thought they had to address digital transformation has compressed and they must accelerate their digital agenda. Leaders recognize they must address their most complex challenges, such as changing the cost structure for running legacy platforms to invest in digital transformation. These are CEO-level decisions that result in business executives leading more and more technology initiatives and at a faster pace than traditional IT modernization."

About the CGI Global 1000

The CGI Global 1000 outlook is conducted annually as a series of forward-looking conversations between CGI consultants and senior business and technology executives in commercial and government organizations. Through these discussions, executives share their perspectives on the trends impacting their organizations and how they plan to address the challenges and opportunities through their business and IT priorities and plans. In 2016, CGI professionals interviewed more than 1000 executives in 10 industries and 20 countries, including in-depth discussions about digital transformation and cybersecurity. For more information about the CGI Global 1000, including a video on its global insights, or to request a meeting to discuss its global, industry or regional insights, visit www.cgi.com/global1000.

About CGI

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 and 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.

Forward-Looking Statements

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") and in other public disclosure documents filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), 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.

Lorne Gorber, Executive Vice-President, Global Communications and Investor Relations, [email protected], [phone]; Sébastien Barangé, Vice-President, Communications, [email protected], [phone]