The Caisse de dépôt et placement du Québec continues the implementation of its new information technology business model

Caisse de dépôt et placement du Québec announced today that it has reached a milestone in the overhaul of its information technology (IT) business model.

“The new model, which is aligned with our new business needs, will make us more cost-effective,” said Pierre Miron, Senior Vice-President, Information Technology. “That’s because it aims to streamline how the group works and provide greater agility, efficiency and control over its operations, while significantly reducing expenses.”

In the process of rethinking policies and activities in 2009, the Caisse initiated discussions on how the IT group operates — in light of the institution’s new strategic direction and changing environment. With this exercise, the Caisse aimed to optimize the team’s activities and reduce its operating costs, while maintaining its client-oriented approach.

The Caisse initially consolidated its IT expertise under the same management. The group’s governance was tightened to ensure better alignment with the Caisse’s needs and priorities. This represented the first step toward a more efficient IT division. The group review subsequently revealed a multitude of systems and the need for a comprehensive view of infrastructure and application requirements. The Caisse strives to optimally use tools from a continuous improvement standpoint. The new IT business model will rely on the best infrastructure and existing applications, ensuring greater synergy between divisions.

The revamped IT business model will reduce the Caisse’s overall IT spending by 21%, which represents recurring annual savings of approximately $20 million.

Outsourcing services

To help achieve its objectives, the Caisse recently renewed for seven years its partnership agreement with CGI to outsource its IT services.

This agreement’s mode of operation has been adjusted to meet the Caisse’s new business needs and will be based on both a shared-service approach to infrastructure management and better application management team integration. This will enable the Caisse to access CGI’s vast pool of expertise and make better use of its tools and processes, while maintaining control and ownership of key elements.

ABOUT THE CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. At December 31, 2009, it held $131.6 billion of net assets. As one of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.cdpq.com.