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_experience the commitment TM

Legacy Application Transformation

Leveraging past investment to build future success

Jan 2011

2

Market data indicates that Legacy Application Transformation

will be a critical activity in the next 5 to 10 years

• Legacy Applications continue to dominate an organization’s portfolio (North America and Europe):

> 310 billion lines of legacy code (65% of total SW)> $2 trillion (USD) worth of Mainframe applications that house 70% of all

critical business logic and data> 5 billion lines of new code are being written every year

• More than 50% of the resources maintaining these systems will be retiring between 2010 and 2020

• Approximately 60% - 70% of IT budgets goes to maintaining Legacy Systems

•Customers expect real-time, consolidated information that is available in a self-serve (e.g. online) environment and customized products/services.

•Rapidly changing regulatory frameworks require agility in back-office platforms.

http://www.davistech-llc.com/Microsoft%20NAMS%20Presentation%20Sacramento.pdf, cited Dec. 2010

“A Workable Application Modernization Framework is Job No. 1 Now”

56475, Forrester Research Inc, April 26th 2010.

3

2/3’s of the IT budget is spent maintaining status quo, leaving

only 1/3 to move the business forward

“A Workable Application Modernization Framework is Job No. 1 Now”

56475, Forrester Research Inc, April 26th 2010.

4

High staff attrition and turnover threaten the loss of legacy

business knowledge held by apps and SMEs

“A Workable Application Modernization Framework is Job No. 1 Now”

56475, Forrester Research Inc, April 26th 2010.

5

Global delivery model – onshore, nearshore,

offshore

Local client

proximity model

115+ proprietary

business solutions

31,000+ IT and BPS

professionals;

5,000 in Ontario

100+ offices in

16 countries

$4.5B Cdn

annualized revenue

Customer satisfaction

score of 9 out of 10;

loyalty score of 9.1

End-to-end IT

Services

One of the Top 8 pure

play providers of IT

services globally

$13.6B backlog

*Scored out of possible 10, as measured by customers according to CGI ISO 9001 certified customer partnership management framework

Canada’s only global IT professional services provider.

Largest local presence in the industry.

CGI Overview

6

• Leading global firms

in aerospace, metals

& mining and

chemicals

• 450 oil and gas

clients

Manufacturing

• 7 of top 10 telecom

firms

• Solutions in 34

major North

American utilities

Telecom and

Utilities

• All major Canadian

banks

• 24 of the top 25

banks in the

Americas and 17 of

the top 25 in Europe

• 8 of top 10 US P&C

carriers and 25+ life

insurers

Financial Services

• 100+ Canadian

federal departments

and agencies

• 9 of 10 Canadian

provinces, all

territories

• 100+ U.S. agencies

and 44 states

• Agencies in Europe

and Australia

Government and

Healthcare

• Partner to 250+

retailers across

North America

• Provider to

distributors in

multiple segments

Retail and

Distribution

CGI Builds Long-Term Relationships in Focused Industries

7

It is critical to improve business agility and reduce costs and

risks related to legacy systems and processes

http://hubpages.com/hub/Application-Rationalization--Modernization-Strategies-for-Investment-Bank-IT-Division

“The March Toward Insurance Claims Automation”, 40546, Forrester Trends, February 8th, 2007

“With 50% - 70 % of bank's IT investment still in legacy technologies…IT needs to

be sure that most of business critical functionality is out of legacy technology

between 2015 and 2020 (modernization) and also that it exists in re-usable form

(rationalization).”

“Many processes are still based on old legacy or manual systems, and insurance

workers spend a large amount of time on associated routine interactions that have

little or no impact on the outcome of a claim. The use of multiple, old, or legacy-

based claims systems creates a series of business inefficiencies and

challenges…”

8

CGI has developed a Legacy Application Transformation

Framework to help our clients respond to these pressures

•The Legacy Application Transformation Framework identifies and addresses

challenges relating to legacy IT environments and the processes that they enable.

•The framework is comprised of six phases, each of which delivers proven

services relating to Business Transformation, Business Process Management and

Technology Services.

•It allows CGI to tailor offerings to clients that can be as specific as documenting

the business and technical functionality of one application or as far reaching as

enabling and delivering a strategic transformational program.

Discovery AssessmentLegacy

Transformation

Roadmap

Legacy

Application

Documentation

Transformation

Delivery

Sustainment &

Management

Technology

Bus. Process

Management

Business

Transformation

9

The Legacy Application Transformation Framework can be

applied entirely as a program or as individual engagements

•The Legacy Application Transformation Framework is built upon discrete services and offerings that can be delivered independently or together as a long-term transformational program.

•It identifies the activities and deliverables that address technology, process and business transformation and are required to successfully overcome legacy related challenges.

Project A

Project B

Project C

Legacy Application

Transformation Program

10

BP

MB

TT

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Legacy Transformation Framework

Phases Discovery Assessment Legacy TransformationRoadmap

Legacy ApplicationDocumentation

TransformationDelivery

Sustainment & Management

Phases may be iterative as a Roadmap and Strategy are executed over a period of timeObjective Articulate

Current State Define

StrategyDefine

RoadmapBaseline Application

KnowledgeExecute Modernization

RoadmapEnsure

Continued SuccessActivities

Document IT landscape Define target state for IT architecture

Define application treatmentDefine modernization timeline and milestones

Validation and enhancement of existing documentationCreation of technical & business documentation

Project delivery of: Legacy Retirement, Migration, Conversion, Enhancement, Extension (SOA), and Re-Architecting

Managing, Monitoring, Refining and Enhancing Application Environment

Review business strategy, objectives and key success factors

Identify transition plans and impacts to IT and business

Detail Change Management PlanFinalize KPI, KSF and business benefits

Develop Training and Communication/ Documentation

Develop and Implement Benefits Realization ProcessesImplement Organizational Model

Ongoing change management support and ImplementationOngoing benefits realization support

High level process environment overview

Inventory current state processesProcess health check diagnostic assessment

High level future state process definitionOpportunity identification and assessment of benefits

Detailed future state process definition

Execute process migration Implement transition to future state

Ongoing sustainment of revised processes

DeliverablesTechnology InventoryTotal Cost of Ownership Stakeholder Analysis, Industry Trends and Competitive Analysis

Scope, Vision and Value PropositionArchitecture Roadmap (4 - 7 year)High Level Business Case Risk mitigation plan

Modernization Roadmap (1 – 3 year)Application BlueprintRefined Business Case IT HR Recommendations

Application BaselineTechnical and Business Documentation

Application/Service Design, Development, Testing and ImplementationSDLC and PMLC Artefacts

Governance Model for Factory Development Processes and Application Management Procedures Documentation and Knowledge Management

Business Transformation Strategy

Business Transformation Plan

Change Management Strategy and PlanBenefits Realization Strategy PlanOrganizational Design Plan

Communication and Training Documentation

Organizational (Roles/Responsibilities) Documentation

Benefits realization support

Stakeholder engagement and organization level process context mapping

Detailed current state process analysis and documentation

Future state process documentationDetailed work plan and benefits realization plan

Detailed future state process documentation Implementation transition plan

Implementation of designed processes

Process sustainment methodology integrated into operating environment

Typical Timeline 1 – 3 weeks 2 – 4 weeks 4 – 12 weeks 2 – 12 weeks 3 – 12 months OngoingPricing Model Fixed Price Fixed Price Fixed Price T&M/Fixed Price T&M/Fixed Price Fixed Price

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11

Clients are driving towards strategic goals driven by Legacy

Application Transformation…

Clients include 24 of the top 25 banks in the Americas and

17 of the top 25 in Europe, 6 of the top 10 global property

and casualty insurers, and 25+ life insurers.

Providing Legacy

Application

Documentation services

to a Canadian bank

through a major

transformational

initiative over a multi-

year program.

Delivering the final

phases of a multi-year,

strategic Legacy

Modernization effort for

one of Canada’s leading

insurers.

Delivering

Modernization Services

converting over 4 million

lines of COBOL to C# to

enable business

strategy and reduce IT

costs.

12

…and are realizing immediate benefit while working towards

these goals

Immediate Benefits

Strategic Goals

• Improve business agility, time to market and regulatory compliance

• Enable business self-serve architecture

• Enable customer self-serve architecture

• Enable customer-centric architecture

• Redirect budget from support/maintenance to value-add activities

• Improve transparency and relationships with business partners

• Reduce risk of unrecoverable system failure

• Unlock system and business knowledge and expertise

• Reduce costs and achieve consistent project success

• Reduce risk of loss of skilled workforce via churn and retirement

13

How Legacy Application Transformation fits into the larger

picture

14

Each project is delivered with a tailored approach and mix of

onsite, Global Delivery Capability and automation tools

Automation

Tools

CGI Onsite

Engagement

CGI Global

Delivery

Capability

Experienced in Legacy

Application Transformation

across most languages

and platforms.

Legacy Application

Transformation successfully

delivered to numerous clients

across a variety of industries.

Leveraging CGI’s established

frameworks, capability and

expertise delivering

Transformation initiatives.

Full service capability including

Business Transformation and

Application Management with

Legacy Application Transformation

Incorporating leading edge evolving tool capabilities.

Tool agnostic approach allowing the selection of the best-of-breed to match the

specifics of the engagement.

15

Our established Consulting Service Lines are used to deliver

Legacy Application Transformation

Transformation starts with discovery and continues through to sustainment to ensure the strategic value and long term success of change.

Discovery

Assessment

Legacy

Transformation

Roadmap

Legacy

Application

Documentation

Transformation

Delivery

Sustainment &

Management

•Technology Inventory

•Stakeholder Analysis

•Business Strategy & Operations

•Scope, Vision & Value Proposition

•Architecture Roadmap

•High Level Business Case

•Modernization Roadmap

•HR Plan & Recommendations

•Process Future Mode of Operations

•System & Business Documentation

•Application Code Baseline

•Detail Business Case

•Application Delivery

•Process Implementation

•Training and Knowledge Transfer

•Capability to Support, Enhance and

Integrate Systems and Business

Services

PeopleBusiness

Transformation

TechnologyIT Strategy and

Solutions

ProcessBusiness Process

Management

16

Established and proven IT services form the basis of the

Legacy Application Transformation Framework

Service Definition

Legacy

Migration

Legacy

Conversion

Legacy

Enhancement

Legacy

Extension (SOA)

Legacy

Re-Architecting

Provide migration to a new platform that is more robust

and/or scalable.

Conversion of Legacy Application, e.g. COBOL to J2EE,

Assembly to COBOL; conversion validation services.

Identify and eliminate redundant or problematic code; re-

face legacy applications with modern UI.

Service enablement on legacy platform through extension

and introduction of SOA based services as an overlay.

COTS or development to replace Legacy functionality and

services with an improved architecture (e.g. SOA).

Legacy

Retirement

Impact analysis, data retention strategies and de-

commissioning services.

Legacy Application

Documentation

Full documentation services for business and technical

functionality, interfaces, dependencies, etc.

17

Decisions are guided by CGI’s proven Application Portfolio

Rationalization & Management (APR\M) methodology

Retain Renovate

Replace or Retire Re-engineerLow

Tactical Strategic

High

Business

Value

Technical

Condition

Legacy

Re-Architect

Legacy

Extension (SOA)

Legacy

Re-Architect

Legacy

Enhancement

Legacy

Migration

Legacy

Conversion

Legacy

Application

Documentation

Total Cost of Ownership is applied subsequently and may result in changes to the application roadmap

AssessmentTechnical

Analysis

Business

ValidationSign Off

Inputs • Application scope

• Stakeholder & Delivery

Team

• Existing documentation

• Source code

• SRS draft v0.0

• SDS draft v0.0

• SRS draft v0.1

• SDS draft v0.1

Roles • Business Analyst(s)

• Technical Support SME(s)

• Systems Analyst(s)

• Technical Analyst(s)

• Technical Support SME(s)

• Systems Analyst(s)

• Business Analyst(s)

• Business SME(s)

• Systems Analyst(s)

• Stakeholders

• Systems Analyst(s)

Activities • Identify and Assess:

• Application architecture

• Related business

processes

• Existing system

documentation

• Required source code

• Current State

Assessment

• Peer review and quality

control

• Analysis of source code

and documentation using:

• Onsite team

• Global Delivery team

• Tools & templates

• Create System

Requirement Specification

(SRS) and System Design

Specification (SDS)

• Peer review and quality

control

• Validate application based

business logic and rules with

business SME(s)

• Identify and address any

gaps in the draft SRS and

draft SDS

• Peer review and quality

control

• Conduct SRS and SDS

review with stakeholder(s)

• Incorporate feedback

• Peer review and quality

control

• Sign off

Milestones • Application scope finalized

• Documented current state

assessment

• SRS draft v0.0

• SDS draft v0.0

• SRS draft v0.1

• SDS draft v0.1

• Final SRS

• Final SDS

Systems Analysts follow a systematic process to complete the

Legacy Application Documentation process.

Confidential18

19

Result

Significantly reduce the cost to support business and deliver

the capability to bring business strategy to life

Migrate to current technologies;

accurately document

applications

Reduced reliance on Legacy Systems,

lower support costs

High cost of legacy system

maintenance

Migrate to current technologies;

accurately document

applications

Increased candidate pool;

knowledge management and

system expertise documented

Shrinking workforce and

fading skill set

Introduce SOA platforms

and applications

Enable for business driven rule

definition and configuration; ability to

react faster to regulatory change

Impaired business agility and

longer time to market

Develop a roadmap for

modernization; implement

capability for integration

Improved project costs and delivery,

improved data quality and

business process support

Lack of flexibility and integration

Accurately document

applications

and IT infrastructure

Ability to quickly check impacts of

modifying or removing interfaces and

functionality

Risks from new implementations

and system changes

Implement well structured code;

accurately document

applications

Ability for Business Analysts to

understand requirement impacts and

associated costs

Project estimations that are not

accurate or are difficult to attain

TransformationChallenge

20

CGI’s comprehensive Legacy Application Transformation

offering enables your business for today and the future

•IT spend towards maintenance

•HR risks and challenges

•Business hampered by systems

•High project costs and risks

•Unclear or roadmap that can’t be realized

•IT spend towards strategic growth

•Documented and transferable expertise

•Business configured rules and processes

•Control project costs and risks

•Clear roadmap, manageable steps

CGI has successfully delivered Legacy Transformation to all industries, across most technologies.

_experience the commitment TM

Our commitment to you CGI provides the best mix of responsive local service at global delivery value.