Business Strategy and Outlook
| Malik Ahmed Khan |CGI is a leading global IT services firm, catering a bit more to governmental agencies than its peers, while providing managed IT, consulting, and IP solutions. We believe that CGI benefits from strong switching costs and intangible assets, the combination of which leads us to assign the firm a narrow economic moat rating. Despite the macroeconomic headwinds, CGI has posted steady revenues due to its long-term contracts with many of its clients, and we think such stability will continue with the help of a stable trend for both CGI’s switching costs and intangible assets, which both work to create stickiness amongst existing customers.