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CGI (GIB) Selected by State of Nevada to Upgrade ERP Systems

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CGI (GIB - Free Report) recently announced that it has secured a significant contract with the State of Nevada to upgrade its enterprise resource planning (ERP) systems.

The state’s decision to opt for CGI Advantage, a cloud-based solution, marks a pivotal moment in its efforts to modernize operations. With a 30-year partnership already in place, CGI's expertise in delivering tailored solutions for government agencies positions them as a trusted partner for Nevada’s transformation journey.

The deployment of CGI Advantage signifies more than just a software upgrade. It represents Nevada’s commitment to enhancing resourcing capacity while embracing modern technologies. By migrating to a software-as-a-service platform, the state aims to streamline financial management, human resources, performance budgeting, procurement and business intelligence operations.

The CGI Advantage solution promises a secure design coupled with a user-friendly experience. With the shift to SaaS, Nevada stands to benefit from AI-powered monitoring and automation, ensuring efficiency and agility in critical functions. Moreover, CGI’s track record of on-time and on-budget implementations instills confidence in Nevada's decision, along with its ability to navigate complex union agreements and grants lifecycle management.

As Nevada embraces CGI Advantage, it sets the stage for a more agile, efficient and responsive government infrastructure, poised to meet the evolving needs of its citizens and stakeholders.

 

 

CGI Rides on Expanding Federal Clientele

The company’s wholly-owned U.S.-subsidiary CGI Federal recently clinched a pivotal contract with the Centers for Medicare & Medicaid Services aimed at enhancing Medicare access for more than 65 million beneficiaries nationwide.

Under the agreement, CGI will revamp the Health Plan Management System, a critical component facilitating Medicare Advantage and Medicare Part D programs. The contract, valued at approximately $72 million, spans a base period of one year with the potential for four additional one-year option periods.

The company’s expanding federal customer base is noteworthy. It recently won a contract from the Commonwealth of Massachusetts to deliver a financial management solution through CGI Advantage, a cloud-based platform that integrates financial data in a modern, unified platform. The State of Utah also selected its CGI Advantage for the modernization of its human capital management solution.

CGI’s expanding international footprint has been a key catalyst. It is strengthening its international footprint with the recently announced partnership with Market Operator Services Ltd (“MOSL”).

Valued at $18.7 million (£11.5 million), this collaboration underscores a commitment to enhancing core platforms like MOSL’s Central Market Operating System and the centralized bilateral transactions ‘hub.’

LocalTapiola, one of the largest insurance and financial services companies in Finland, recently extended its long-term strategic partnership with GIB for an additional five years.

GIB’s strong partner base, which includes Alphabet, Microsoft and Amazon, has been a key catalyst.

Zacks Rank & Stocks to Consider

CGI currently carries a Zacks Rank #4 (Sell).

GIB shares have underperformed the Zacks Computer & Technology sector in the year-to-date period. While CGI shares have declined 0.4%, the broader sector has returned 12.1%.

NVIDIA (NVDA - Free Report) , BILL Holdings (BILL - Free Report) and Synopsys (SNPS - Free Report) are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Year to date, shares of NVDA and SNPS have gained 73.4%, and 10.1%, respectively. BILL shares have declined 24.2%.

Long-term earnings growth rates for NVIDIA, BILL Holdings and Synopsys are currently pegged at 30.93%, 23.64% and 17.51%, respectively.


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