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| Top 25 Professional Services Companies |
February 27, 2007 |
This year’s Top 25 Professional Services Companies had steady performance in 2006, producing revenues of $7.075 billion, a decrease from the $7.2 billion produced by last year’s listed firms. The revenues from the Professional Services category account for 26 per cent of the Branham Top 250—on par with last year’s contribution of 25 per cent. The geographic composition of the Top 25 Professional Services Companies has not changed considerably over the past year. Ontario represents 56 per cent of the list with 14 companies (up from 52 per cent last year), Quebec represents the same amount as last year with 12 per cent or three companies, Alberta comprises 20 per cent of the list with five companies (up from 16 per cent last year), while British Columbia and Nova Scotia comprise eight per cent and four per cent respectively.
When we look at all of the professional services companies on the Top 250, we see that Ontario contributed 70 per cent of the total companies.
Comparing only this year’s participants shows revenue growth. A comparison has been made amongst all companies in the professional services category, the Top 25 companies and all professional services companies that were not in the Top 25 (called “All Other Professional Services Companies”). The Top 25 companies account for 95 per cent of the total revenues of the entire professional services category. Subsequently, the revenue growth rate for both groups is very close: 5.52 per cent year-over-year growth for all professional services companies, and 4.67 per cent for the Top 25 Companies. The proximity of these rates is mainly due to the strong performance of the top five professional services companies (CGI Group, MDA, xwave, Procom and CNC Global), whose combined 2006 revenues amount to $5.376 billion. Professional services companies that did not make the Top 25 (but were part of the Top 250) were companies that ranged in revenue from $3 million to $20 million and together produced a total of $372 million. It is very interesting to note the growth rate difference between this group and the Top 25 companies. While the Top 25 companies, as a whole, achieved 4.67 per cent year-over-year revenue growth, all other professional services organizations achieved a combined growth rate of 24.78 per cent, a substantial difference that characterizes the strong performance and importance of Canadian SMBs.
This year’s Top 25 Professional Services list is composed mostly of returning members, as well as some new companies. CGI Group, MacDonald, Dettwiler and Associates (MDA) and xwave return as the top three companies. While CGI Group incurred a reduction in revenues of six per cent, MDA had an estimated 22 per cent year-over-year increase in revenues. PROCOM was the number six professional services company last year, rising to number four this year. CNC Global, which was number nine last year, jumped to the number five position this year. CGI Group of Montreal earned revenues of $3.477 billion in 2006, down from $3.686 billion in 2005, largely due to the challenges faced with the strength of the Canadian dollar as well as reduced BCE work volumes. However, the company positioned itself for growth through several successful contracts, including the extension of its outsourcing contract with Laurentian Bank, as well as additional contracts with the City of Calgary, British Columbia Ministry of Health and the Alberta Ministry of Health and Wellness. MDA increased revenues by 22 per cent to an estimated $1.018 billion in 2006. MDA expanded its valuation solution in the U.K. through subsidiary xit2, introduced a new data marketing solution into the United States through its subsidiary DataQuick, provided a crime scene assessment solution to the Canadian government, and was chosen as the sole supplier of ground station solutions for DigitalGlobal’s international customers. xwave experienced an estimated revenue decline of four per cent but still produced solid revenues, estimated at $340 million. It had interesting activity in 2006, including selection by the Workplace Health Safety and Compensation Commission as an IT partner and its joint contract with GE Healthcare to provide clinical management systems to Ontario physicians.
CNC Global, an IT professionals sourcing company, experienced 56 per cent yearover- year revenue growth, the strongest in the company’s 25-year history. CNC Global ended its 2006 fiscal year with $255 million in revenues.
To view the results from last year, please click here
To return to the table of contents, please click here
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