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CGI helps other organizations run and improve their computer systems and software.
CGI Inc. is a services company that other businesses and governments hire to build, run, and fix their computer systems. When a bank needs to modernize the software that processes loans, or a city wants to move its records to the cloud, CGI supplies the people and know-how to get it done. The company makes money in two main ways. The first is consulting and systems integration, which is project work — designing and building custom software, roughly a third of revenue. The second and larger piece is managed services, where CGI essentially rents out its expertise on long-term contracts, running and maintaining a client's IT systems year after year, which brings in about half of revenue. The rest comes from selling its own software products and from intellectual property. Clients tend to stay for a long time because ripping out and replacing the systems that run a bank or a government agency is expensive and risky.
Think of it as the plumbing and electrical crew for the digital world — you rarely see them, but nothing works without them. CGI is headquartered in Montreal, Canada, and was founded in 1976 by two entrepreneurs who started by helping clients with their IT needs. It has grown largely by buying other IT services firms — it has made well over a hundred acquisitions — which lets it expand into new countries and industries without having to win every customer from scratch. That buy-and-build habit is a core part of the story. A large share of revenue comes from government contracts, which are steady and recurring but can be slow to win and vulnerable to political budget cycles.
Recent years have brought a push into artificial intelligence and cloud work, plus a big focus on helping clients cut costs. CGI generates solid free cash flow, and management uses it to fund acquisitions, pay a modest dividend, and buy back shares — buybacks have reduced the share count by low single-digit percentages in recent years. The main risks are straightforward: IT spending is tied to the health of the economy, competition from Indian and global rivals is fierce, and long government sales cycles mean growth can be lumpy. Still, the long-term contracts and high customer retention give the business a dependable, subscription-like feel that many pure project shops lack.
Saved answer · last researched 11 Oct 2026