This U.S. Federal Contractor Got Out of the Shutdown Unscathed
(Bloomberg) -- CGI Group Inc. is not afraid of U.S. shutdowns.
The Canadian information technology provider, which derives about 13 percent of its revenue from U.S. federal contracts, said the impact of the recent 35-day partial government shutdown was “very minimal” during the 28 days that fell during the current quarter. The disruption affected bookings in the last days of the previous quarter, which ended Dec. 31.
According to Chief Executive Officer George Schindler, 90 to 95 percent of its work for the federal government is unaffected by shutdowns. That’s in part because a lot of the work it does, such as financial processing, is deemed essential, even in closed agencies, he told analysts Wednesday. Some is also funded by fees the public pays for visas or passports.
In addition, the company quickly moved around staff during the shutdown -- the longest in history -- Schindler said. Some worked on other federal projects, while the company’s other U.S. contracts for local governments or commercial clients also provided opportunities.
“We did move some people that would have been in a more tenuous situation without an agency or project to work on,” Schindler said. “We’re pretty nimble.”
Earlier, the company reported earnings that met analysts’ expectations.
CGI employs more than 11,500 people in the U.S., with about 6,500 in the federal unit.
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