The document discusses the need for legacy application transformation due to the large amount of legacy code and resources spent maintaining it. It notes that over 50% of IT resources will retire in the next decade and that legacy systems hamper business agility and customer experience. The document then summarizes CGI's legacy application transformation framework which takes a six phase approach to address challenges through business transformation, business process management and technology services tailored to each client's needs.

1. Jan 2011 Legacy Application TransformationLeveraging past investment to build future success

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

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

5. Rapidly changing regulatory frameworks require agility in back-office platforms.“A Workable Application Modernization Framework is Job No. 1 Now” 56475, Forrester Research Inc, April 26th 2010. http://www.davistech-llc.com/Microsoft%20NAMS%20Presentation%20Sacramento.pdf, cited Dec. 2010

6. 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.

7. 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.

8. 5 CGI Overview Canada’s only global IT professional services provider. Largest local presence in the industry. End-to-end IT Services One of the Top 8 pure play providers of IT services globally 31,000+ IT and BPS professionals; 5,000 in Ontario Local client proximity model Global delivery model – onshore, nearshore, offshore 100+ offices in 16 countries 115+ proprietary business solutions $4.5B Cdn annualized revenue Customer satisfaction score of 9 out of 10; loyalty score of 9.1 $13.6B backlog *Scored out of possible 10, as measured by customers according to CGI ISO 9001 certified customer partnership management framework

10. 9 of 10 Canadian provinces, all territories

11. 100+ U.S. agencies and 44 states

12. Agencies in Europe and Australia

13. Leading global firms in aerospace, metals & mining and chemicals

14. 450 oil and gas clients

15. Partner to 250+ retailers across North America

16. Provider to distributors in multiple segments

17. All major Canadian banks

18. 24 of the top 25 banks in the Americas and 17 of the top 25 in Europe

19. 8 of top 10 US P&C carriers and 25+ life insurers

20. 7 of top 10 telecom firms

21. Solutions in 34 major North American utilitiesFinancial Services Government and Healthcare Manufacturing Retail and Distribution Telecom andUtilities

22. 7 It is critical to improve business agility and reduce costs and risks related to legacy systems and processes “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…” “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).” http://hubpages.com/hub/Application-Rationalization--Modernization-Strategies-for-Investment-Bank-IT-Division

24. The framework is comprised ofsix phases, each of which delivers proven services relating to Business Transformation, Business Process Management and Technology Services.

25. 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 Assessment Legacy Application Documentation Transformation Delivery Sustainment & Management Legacy Transformation Roadmap Technology Business Transformation Bus. Process Management

28. 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.

30. Improve transparency and relationships with business partners

31. Reduce risk of unrecoverable system failure

32. Unlock system and business knowledge and expertise

33. Reduce costs and achieve consistent project success

35. Enable business self-serve architecture

36. Enable customer self-serve architecture

39. Leveraging CGI’s established frameworks, capability and expertise delivering Transformation initiatives.

42. Stakeholder Analysis

44. Architecture Roadmap

46. HR Plan & Recommendations

48. Application Code Baseline

50. Process Implementation

52. 16 Established and proven IT services form the basis of the Legacy Application Transformation Framework Service Definition Legacy Application Documentation Full documentation services for business and technical functionality, interfaces, dependencies, etc. Legacy Retirement Impact analysis, data retention strategies and de-commissioning services. Legacy Migration Provide migration to a new platform that is more robust and/or scalable. Legacy Conversion Conversion of Legacy Application, e.g. COBOL to J2EE, Assembly to COBOL; conversion validation services. Legacy Enhancement Identify and eliminate redundant or problematic code; re-face legacy applications with modern UI. Legacy Extension (SOA) Service enablement on legacy platform through extension and introduction of SOA based services as an overlay. Legacy Re-Architecting COTS or development to replace Legacy functionality and services with an improved architecture (e.g. SOA).

53. 17 Decisions are guided by CGI’s proven Application Portfolio Rationalization & Management (APR) methodology Retain Renovate Legacy Enhancement High Legacy Migration Legacy Extension (SOA) Legacy Conversion Technical Condition Legacy Application Documentation Legacy Re-Architect Legacy Re-Architect Low Re-engineer Replace or Retire Tactical Business Value Strategic Total Cost of Ownership is applied subsequently and may result in changes to the application roadmap

54. Assessment Technical Analysis Business Validation Sign Off Systems Analysts follow a systematic process to complete the Legacy Application Documentation process. Confidential 18

55. 19 Result Significantly reduce the cost to support business and deliver the capability to bring business strategy to life Challenge Transformation 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

57. HR risks and challenges

58. Business hampered by systems

59. High project costs and risks

60. Unclear or roadmap that can’t be realized

61. IT spend towards strategic growth

62. Documented and transferable expertise

63. Business configured rules and processes

64. Control project costs and risks

65. Clear roadmap, manageable stepsCGI has successfully delivered Legacy Transformation to all industries, across most technologies.

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