Oriflame Holding AG has inked a seven-year deal outsourcing its IT and finance operational services to IBM, the beauty company announced Tuesday.
The partnership will enable Oriflame to reduce costs and advance the digital transformation of its business, drawing upon IBM’s expertise in analytics, cognitive systems and cloud-based services. The resulting services and tools will help to drive customer focus, productivity and automation at the $1.3 billion company, which sells a wide portfolio of Swedish, nature-inspired beauty products.
“For Oriflame, being already advanced in the online area, this partnership will be another leap forward in our digital business transformation,” said Gabriel Bennet, Oriflame Chief Financial Officer. “IBM’s innovation in cognitive analysis for IT and financial transactional services will provide us with valuable business insights.”
Over the course of the partnership, IBM will roll out custom tools based on its proprietary technology platform, Watson, to provide spend analytics, payment terms optimization and cash forecasting. The technology firm also will introduce cloud-based enabling tools for increased accuracy and efficiency. Switzerland-based Oriflame said it will continue to manage the IT portfolio and develop its core systems.
“We have implemented IBM Design Thinking techniques to help build solutions which deliver a better user experience,” said Anita Karlsson-Dion, Vice President of Client Services for IBM Global Business Process Services. “We’re very confident that this will bring a customer-oriented focus to the delivery of IT and financial services for Oriflame.”
The partnership with IBM is slated to begin next month, with implementation across the entire Oriflame group by the end of 2017.