CGI (NYSE: GIB) (TSX: GIB.A) has entered into an IT services outsourcing agreement with the City of Vantaa in Finland. Under the agreement, CGI will assume responsibility for the city’s information systems, servers and workstations, as well as provide support for around 11,000 end users. A number of Vantaa employees will join CGI as part of the agreement.
The five-year agreement is valued at approximately 22 million euros and takes effect on January 1, 2015. The work will begin with an initial planning project to ensure a smooth transition. No visible impact on the residents of Vantaa is expected.
"The key to success is not just in outsourcing, but in finding a talented and innovative supplier,” said Antti Ylä-Jarkko, CIO for the city. “We need a strong supplier that thinks outside of the box. Based on our strategy, the IT department needs to become a highly-skilled service supplier for end users.”
In addition to supporting thousands of end users and a wide range of information systems and software, the city’s IT services cover approximately 13,000 workstations, 16,500 tablets and 200 servers. Services are also used by about 30,000 educational network users.
"IT infrastructure outsourcing is a clear trend in the public sector because its benefits are so clear,” noted Leena-Mari Lähteenmaa, senior vice president, CGI. “For example, critical, around-the-clock monitoring systems are difficult and expensive to implement and maintain in-house. It’s also important to note that the cost and quality benefits of outsourcing improve significantly when detailed service levels with clear sanctions are agreed upon between the outsourcing partners.”