Cirque du Soleil's Information Technology Initiatives

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Case Details:

Case Code : ITSY060
Case Length : 10 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Cirque du Soleil
Industry : Entertainment
Countries : Canada

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"IT is the last thing to leave a site and the first to be in production at the next location. It's on the critical path to be ready for the premiere (in each city)."¹

- Danielle Savoie, Vice President, Knowledge Management and Information Technology, Cirque du Soleil, in November 2002.

Introduction

In April 2006, Montreal, Canada-based Cirque du Soleil (Cirque)² announced that the company would outsource its information technology (IT) needs to CGI Group Inc. (CGI) (Refer to Exhibit I for more information on CGI).

The agreement would be for a period of ten years, with the contract being valued at CDN$ 130 million³.

As a result of this contract, 84 IT professionals from Cirque, located in Montreal, Las Vegas, and Orlando were absorbed by CGI. It was agreed that CGI would develop and support Cirque's Worldwide IT infrastructure and applications.

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Talking about the deal, Danielle Savoie (Savoie), Vice President – Knowledge Management and Information Technology, Cirque, said, "We were looking for an IT service supplier able to support our activities worldwide. We needed a true partner – one as flexible and rigorous as we are.

We also knew that for our growth initiatives to succeed, we would have to be able to depend on professionals who consistently work at the leading edge of technology.

That's why we entrusted the delivery of our IT functions to CGI through a 10-year outsourcing contract. We believe that this decision will prove most beneficial for Cirque du Soleil."⁴

In July 2006, Cirque and Orange Business Services entered into a deal according to which Orange would manage Cirque's global IT network to support its performances. Through IP VAN and WAN solutions, Cirque's strategic applications were made available across the world.

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1] Alice Dragoon, "Rapid Deployment: IT at Cirque du Soleil," www.cio.com, November 01, 2002.

2] Cirque Du Soleil, which means "Circus of the Sun" in French, is a privately held entertainment company headquartered in Montreal, Quebec, Canada. The annual revenue of the company was estimated at US$ 600 million in the financial year 2006.

3] As of December 13, 2007, 1 Canadian Dollar = US$ 0.989.

4] "Cirque du Soleil," CGI Annual Report, 2006.