John Hancock Life Insurance and CGI Group Inc. (CGI) (TSX: GIB.SV.A; NYSE: GIB), have announced the signing of a seven-year information technology outsourcing contract valued at US$166 million.
This contract has provisions for a three-year extension. CGI will be responsible for infrastructure management services including mainframe and mid-range equipment, data storage and recovery, document management as well as professional services to transform the delivery platforms.
CGI will be providing all services via its global delivery model from its global centers in the United States and Canada. This win builds on the agreement signed on September 23, 2004 between Manulife and CGI for a contract value of CDN$125 million. That agreement announced the building of CGI's International Systems Development Center (ISDC) in Atlantic Canada. The ISDC provides systems development and maintenance services to Manulife and other CGI clients worldwide. Manulife merged with John Hancock in April 2004.
"In working with CGI over the past year we have developed a strong partnership based on our mutual adherence to operational excellence as well as a shared passion and deep understanding of the evolving world of insurance. With today's news, we continue to lay the foundation for future growth from which we can further strengthen our foothold as a leading insurance supplier in the US," said James M. Benson, president and CEO, John Hancock Life Insurance Company.
Michael Roach, CGI president and COO added: "This agreement is a clear sign of our ability to help our clients win and grow. We are extremely pleased and proud with this expansion of our services. By tapping into our global delivery model, we are able to offer John Hancock best-in-class services in an effective and efficient manner. We look forward to growing with this leading insurance provider."