As the world quakes over Trump, CGI has dollar signs in its eyes
'It's a nice opportunity,' says Canuck outsourcing giant
While most of the world looks on in despair at Trump, Canadian outsourcer CGI is rubbing its hands together at the prospect of some lovely new business.
In its first-quarter results, the outsourcing giant said it stands to benefit from increased spend in defence, government, intelligence and tax reform. That is despite it being behind the soon-to-be-dismantled Obamacare.
CGI posted an increase in sales of 3.7 per cent constant to CAD$2.7bn (£1.6bn). Net earnings rose 16 per cent to CAD$275.7m.
In its earnings call, analyst at Barclays Capital Canada Phillip Huang noted that the focus on defence under the Trump administration "should benefit CGI".
Chief exec George Schindler responded that early indications suggest the outfit will probably see an increase in spend.
He said: "It's a nice opportunity, but a nice one where you see some of the priorities already starting to shift."
Schindler said the company doesn't "have any real exposure at this point to Obamacare", despite Trump's promise to repeal the Affordable Care Act. John McCaul, analyst at Megabuyte, noted that CGI may be at an advantage against some of its offshore competitors, "which we assume will be worried by the new [visa] rules".
He added: "It will be interesting to see how CGI performs, especially in the US market, over the coming months and whether it can take advantage of possible opportunities."
The company reported a revenue increase of 16 per cent "as large-scale projects across the UK public sector continue to ramp up". It did not disclose overall revenue figures.
Schindler noted that the UK government recently committed €1.4bn (£1.2bn) over the next five years to the European Space Agency.
Back in 2012, CGI deepened its UK footprint by splashing out on the Anglo-Dutch biz Logica for £1.7bn. ®