Compared to each of the other major sectors that comprise the Canadian ICT industry, the leading players within the ICT Professional Services sector generated lower levels of growth in 2011.
The sector’s 82 companies on this year’s Top 250 combined to produce $10.87 billion, up only 2.02 per cent from $10.65 billion in 2010. However, it was corporate restructurings and changes in revenue reporting amongst some of the sector’s leading companies, and not poor performance, that were the key contributors to the sector’s stagnant growth in 2011.
For the eighth consecutive year, CGI Group headlines Canada’s Top 25 ICT Professional Services companies listing. Strengthening its hold on the number one position, the Montreal-based company increased sales by 15.84 per cent to $4.32 billion, with much of the company’s growth in 2011 coming from its acquisition of Stanley. While the company did not finalize any major acquisitions in 2011, it has a long-standing strategy of pursuing deals that complement core offerings and expand its geographical footprint. Look for CGI Group to continue to act as a consolidator in the near term.
Softchoice jumped one position into the second spot in 2011, with sales increasing 13.69 per cent year-over-year to $1.02 billion. Late in its 2011 fiscal year, Softchoice announced the take-over of UNIS LUMIN, another leading Canadian ICT Professional Services player, in a deal valued at US$17 million.
It is expected that Softchoice will increase its cloud-related offerings, an area in which UNIS LUMIN had invested heavily, prior to its acquisition.
MacDonald, Dettwiler and Associates slid to the third spot this year, due to the $815 million divesture of its Property Information business unit to TPG Capital in January 2011. With the sale, the company’s revenues from continuing operations increased an estimated 11.45 per cent from $689.03 million in 2010 to $767.93 million in 2011.
Several other sector leaders posting notable growth in 2011, with Procom Consultants Group, Maplesoft Group, The Herjavec Group, VERITAAQ, and TES – The Employment Solution all experiencing year-over-year gains of 30-plus per cent in 2011.
Branham300 Table of Contents - 2012