CGI and Kesko form strategic partnership to accelerate digital transformation in retail.

CGI and Kesko have signed a strategic partnership to accelerate digital transformation in the retail sector. CGI will provide end-user services, capacity and cloud services, and integrations to support Kesko's digital development initiatives. The partnership aims to enhance productivity and drive business growth through automation and AI-based solutions.

CGI (NYSE: GIB) and Kesko have entered into a strategic partnership aimed at accelerating digital transformation in the retail sector. The agreement, announced on August 20, 2025, encompasses a wide range of IT services, including end-user services, capacity and cloud services, and integrations. CGI will also support Kesko's K Group retail network in various digital development initiatives [1].

The partnership focuses on leveraging automation and AI-based solutions to enhance business renewal and productivity. Kesko, one of the largest retail companies in Northern Europe, selected CGI through a competitive bidding process, citing the company's international expertise and local presence as key factors [2].

The collaboration model includes shared goals, risks, and joint metrics to guide the achievement of strategic objectives. This approach aligns with the industry's evolution towards outcome-based contracts where technology providers share responsibility for achieving business results [1].

CGI's strategic IT partnership with Kesko strengthens its European retail presence and expands recurring revenue streams. The agreement highlights AI and automation solutions as key components, indicating higher-margin advanced technology services rather than just basic IT support [1].

Kesko's position as a retail leader in Northern Europe makes this a strategically valuable reference client. The K Group operates approximately 1,800 stores across Finland, Sweden, Norway, Estonia, Latvia, Lithuania, and Poland, providing CGI with expanded visibility in these markets [1].

While financial terms weren't disclosed, strategic partnerships of this nature typically represent multi-year, multi-million dollar engagements that enhance revenue predictability and provide opportunities for scope expansion over time [1].

References:
[1] https://www.stocktitan.net/news/GIB/r-e-p-e-a-t-cgi-and-kesko-enter-strategic-partnership-to-accelerate-7xxfjhode3mf.html
[2] https://ca.finance.yahoo.com/news/cgi-kesko-enter-strategic-partnership-063000517.html