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SACRAMENTO - The State of California has extended its contract with CGI (TSX:GIB.A) (NYSE:GIB), a $22.7 billion market cap IT services company, for three years at a value of $200 million to continue managing the state’s caregiver payment platform, according to a press release statement issued Thursday. According to InvestingPro analysis, CGI maintains strong financial health with robust cash flows and is recognized as a prominent player in the IT Services industry.
The agreement covers end-to-end managed services for the Case Management, Information and Payrolling System (CMIPS), which supports California’s In-Home Supportive Services (IHSS) program serving over 850,000 recipients and employing more than 760,000 caregivers. With annual revenue exceeding $10.5 billion, CGI has demonstrated its capability to handle large-scale government contracts effectively.
CGI will maintain its delivery of business process outsourcing and IT services for the IHSS payroll processing system, which handles approximately 1.5 million payroll payments monthly, totaling more than $19 billion annually.
The technology firm has previously implemented several improvements to the system, including cloud migration of legacy infrastructure, digitization of timesheets and W-2s, and DevOps automation to enhance system reliability.
"The multi-year contract renewal with the State of California reflects the vital role CGI plays in modernizing the state’s IHSS care infrastructure," said Virginia Williams, Senior Vice-President & Business Unit Leader, U.S. Northwest Operations at CGI.
The ongoing partnership between CGI and the California Department of Social Services aims to ensure timely and accurate compensation for caregivers while reducing administrative barriers for families receiving support services.
CGI, founded in 1976, reported CA$14.68 billion in fiscal 2024 revenue and employs 94,000 consultants and professionals globally. Currently trading near its 52-week low, CGI shows promising fundamentals according to InvestingPro analysis, which reveals 8 additional key insights about the company’s performance and outlook. For detailed metrics and expert analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
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