Kesko Partners with CGI for Strategic Digital Transformation

What's Happening?

Kesko, a Finnish retail conglomerate, has announced CGI as its strategic partner for digital transformation. This collaboration aims to leverage technology-driven initiatives to position Kesko as a digital leader in the retail sector. Kesko, which operates in multiple countries including Sweden, Norway, Denmark, and Poland, is focusing on becoming a digital forerunner amidst the ongoing disruption in retail due to digital and technological advancements. The partnership with CGI was finalized after a competitive bidding process, with CGI's international expertise and local presence being key factors in their selection. The partnership will encompass a wide range of IT services, including end-user services, capacity and cloud services, and integrations. CGI will also assist Kesko in exploring automation and AI-based solutions to enhance productivity and business innovation.

Why It's Important?

The partnership between Kesko and CGI is significant as it represents a major step in Kesko's digital transformation journey, which is crucial for maintaining competitiveness in the rapidly evolving retail industry. By integrating advanced technologies such as AI and automation, Kesko aims to improve operational efficiency, enhance customer experiences, and streamline supply chain processes. This move is expected to boost profitability and support sustainable transformation efforts. The collaboration also highlights a growing trend in the IT sector where companies are forming strategic partnerships to share goals and risks, thereby driving business development and growth. Kesko's initiative is poised to set a benchmark in the retail industry for leveraging technology to achieve strategic objectives.

What's Next?

As part of the broader IT services framework, Kesko has also partnered with other companies like Elisa, Futurice, Nitor, Fujitsu, and Tata Consultancy Services. This comprehensive approach to IT services transformation is the largest in Kesko's history, aiming to build a more agile and technologically advanced IT operating model. The focus will be on extensive utilization of AI, increased automation, and enhanced information security. These developments are expected to unfold over the coming years, with Kesko and its partners working closely to achieve shared strategic goals. The success of this transformation could influence other retailers to adopt similar strategies in their digital journeys.