CGI Group Inc. (NYSE:GIB) Q4 2015 Earnings Conference Call - Final Transcript
Nov 11, 2015 • 09:00 am ET
up and the spending gets down through the departments and gets materialized into project work, then we have the opportunity for it actually to be a tailwind and help us lift the US growth rate.
So, the team down there, I think, have been very realistic and prudent. They've obviously built a plan to try and reflect the environment in which they work. And so, it is a factor that we need to keep our eye on here relative to the rate of growth in the United States.
Perfect. Thanks Mike.
Wayne, we're going to have time for one last one.
So the final question is from Thanos Moschopoulos from BMO Capital Markets. Please go ahead.
Hi. Good morning. Mike, the margins in the UK were exceptionally strong, so certainly, kudos to Tim and his team. Were there any specific one-time factors or was that driven primarily by ongoing operational improvements and a better revenue mix?
No. We didn't have any one-times in the UK this year in the quarter. Again, the team over there really did a bang-up job not only in putting up the -- improving the margins, they've had to work through some very tough, large red projects that was inherited through the acquisition. And at the same time, they've had to go out and win new long-term, better-quality revenue margin mix going forward, and they've done that.
So, I think this is a reflection of that work. I'm not telling you that every quarter will be 17%, but we're on the right path and trend in the UK. And again, when I look at the big markets like UK and France from a growth standpoint, they're going to be big engines over there for us in '16, as well the US and as well Canada, because the Canadian growth rate is -- negative rate is heading in the right path very rapidly as well. So, no one-times there, just good solid management execution by the team.
That's great. And on Canada, I thought your commentary was interesting about the Canadian nearshore opportunity given the favorable FX rates. And so, is it early days on that front or to what extent are you seeing interest from US and international customers for Canadian services, how meaningful of an opportunity could that be relative to the Canadian domestic opportunity?
Yes, I think it's one of a number of factors that can help us improve the growth rate in Canada. It takes a little time to do that because you've got to convince the customer, of course, that you're going to be able, not only to deliver to the scale he's looking at, but as you lock down on a price that we can hedge on the currency to protect both the customer and ourselves.
The other interesting thing, we're seeing really good cooperation between France and our Quebec centers here, where we're able to leverage again our proximity model in France, and offer delivery services