>> am not familiar with Canadian y2k solution providers.
Happy to oblige - Tim, we have some excellent companies.
The major national public companies are CGI Group and LGS Group. Both have been in business for over 25 years, have ISO 9000 certified project management methodologies, have offices across Canada and have Y2K contracts already. If the survival of my company depended on it, I would entrust my systems to one of these two, strictly on their excellent track record with both government and industry.
LGS is probably the more visible Y2K play; they are using Peritus' tool which is very well respected. LGS has had a lead role in working with the federal government's CIO to address and co-ordinate the problem with the government's systems. LGS also has 3 offices in France and look to develop the European market.
CGI is more of a backhanded Y2K play. I bought in January as I saw Y2K potential but the stock has since surged due mainly to the tremendous growth in their outsourcing firm - the building blocks being put into place reflect a very competent and visionary manangement.
CGI has a solid Y2K remediation service (based on Informission, privately held) and has started with some preliminary contracts which will lead to bigger chunks. What I see happening is that their Y2K work will inevitably lead to more outsourcing contracts. In the long term, I feel that the outsourcing angle is the best bet for building the business into the next century. While the stock price has tripled since January, I still feel that the Y2K potential has yet to be factored in. A buyout is also a distinct possiblity as the outsourcing business is constantly consolidating.
Agiss is strictly in Eastern Canada at this time, though pilots with the government departments makes the potential very interesting. With ConSy Gen's tool, they can address a wide variety of platforms. No contracts to date.
Transfomation Processing is in Toronto only but may now be marketed through Systemhouse. No contracts to date.
Group West is in Western Canada with a couple of offices also in the western US. Their potential business seems limited to the AS/400 platform. They have access to an unspecified scanning tool. No contracts to date.
>> What is your take on agcr's potential to win big contracts in Canada vs. some of the US firms like kea operating there?
Keane is strong on project management and I would compare them to CGI and LGS, rather than Agiss. As far as I know, Keane is in Toronto only so may not have much of a shot at federal work in Ottawa. Also, ability to provide services in both languages may hinder Keane while both CGI and LGS have these in spades.
Agiss doesn't have the track record of either but they do have access to ConSyGen's tool to automate the conversion, which gives them the nod in that area.
>>Do Canadian gov't projects give preference to Canadian Solution providers?
Not as a matter of policy. Systemhouse (now a part of MCI), DMR (now a part of Amdahl) gets their fair share of government work.
>> How long have you owned this stock and what was your buy rationale?
I bought just recently - strictly a speculative purchase on the basis of access to the ConSyGen tool and the pilots with three federal government departments. My position at this time is small, pending more DD.
Before the Y2K work, they had other software products in the area of hospital management, environmental management and inventroy control. At this time, I am trying to get more information on the company and theese other products - will post it when I can get it. |
