CGI Group - Competitors

CGI Group Competition

Now Viewing CGI Group's competition in: Information Technology (primary)

Recent Developments

India Still Top Offshoring Location - India remains the top location for companies seeking low-cost IT skills, but the rising value of the country's currency is eroding its cost advantage, according to IDC. Bangalore and New Delhi are the top offshoring sites due to existing infrastructure, large number of skilled workers, and competitive pricing. IDC expects several Chinese cities to become top IT offshoring centers by 2012.

Web 2.0 Gains Traction in Business - User-oriented Web 2.0 technologies such as blogs, wikis, and RSS feeds are being used more often in business settings, according to Forrester Research. About 60 percent of IT professionals surveyed expect Web 2.0 technologies to moderately or substantially impact their businesses in the next three years. While IT departments are becoming more comfortable with Web 2.0 tools in the workplace, 31 percent of those surveyed say that they're concerned about the risks of employee-driven, unsanctioned use of Web 2.0 tools.

IT Spending Growth Expected to Slow - US corporate spending on IT products and services will grow more slowly year-over-year in 2008, according to Bernstein Research. IT spending will increase between 4 and 5 percent in 2008, compared with a 9 percent increase during 2007. Spending on computer storage products will be a priority, but is expected to decline for external consulting and IT services.

Competitive Landscape

Demand for IT services is driven by rapid technological advances, but spending for these expensive products depends on the health of the US economy. The profitability of companies in the industry depends on maintaining technical expertise and on good marketing. Small companies can compete effectively by specializing in market niches or by partnering with larger companies that want to offer a broad array of services. Only the large companies can provide outsourcing services to big corporate customers. Average annual revenue per employee is close to $200,000.

Full Industry Overview For Information Technology

Information Technology Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US computer and data processing is forecast to grow at an annual compounded rate of 6.1 percent between 2008 and 2013.

Computing Services Growth Stabilizes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.