FAIRFAX, VIRGINIA--(Marketwire - Nov. 27, 2012) - CGI Group Inc. (NYSE:GIB) (TSX:GIB.A), a leading provider of information technology and business process services, today announced that six U.S. states - California, North Carolina, Virginia, Hawaii, Kansas and Missouri - have certified that they have collected more than $2 billion in additional revenues as a result of collections and tax modernization projects implemented by CGI.
Through CGI's unique "benefits-funding" model, these fixed-price performance-based projects are funded from a percentage of increased revenues. Both CGI and the client share in the success of this model where no monies are paid to CGI from a state until revenue is generated. Through this approach, CGI has achieved or exceeded client revenue collection expectations while fully realizing CGI's contract value. In addition to recovering significant revenue to support State General Fund operations, CGI's solutions help states improve collections, tax discovery, customer service and tax administration as well as flex and adapt to changing legislative requirements and technology opportunities.
CGI's latest tax modernization and collections solution is underway for the California Franchise Tax Board (FTB). In just 15 months, the Enterprise Data to Revenue (EDR) project has generated more than $128 million for the State - 81 percent ahead of projections - with total revenue increases for the State of $2.8 billion projected by 2016-2017. When complete, EDR is expected to deliver revenue increases of $1 billion annually for the State of California.
"Our partnership with CGI is instrumental to our success. It's great to have the commitment and competence of an organization like CGI and its partners on the team. Additionally, we have the full support of everyone here at FTB, and that's crucial for the project, today and over the next several years," said Kem Musgrove, Technical Director, California Franchise Tax Board.
"CGI partners with our public sector clients to develop effective solutions for raising much-needed revenues," said Ted London, Vice-President, CGI's public sector tax, revenue and collections practice. "Having led more than 20 major tax implementations worldwide, CGI sets the standard for collections automation, web-based tax administration and benefits-funded financing."
Founded in 1976, CGI Group Inc. is the sixth largest independent information technology and business process services firm in the world. With approximately 72,000 professionals located in offices and global delivery centers in the Americas, Europe and Asia Pacific, CGI offers a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as more than 100 proprietary solutions. Further to the recent completion of the Logica acquisition, CGI's annualized revenue is approximately C$10.4 billion, with an estimated order backlog of approximately C$17.7 billion, CGI's shares are listed on the NYSE (GIB) and the TSX (GIB.A) and are included in the FTSE4Good Index. Website: www.cgi.com.
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