Oriflame awards seven-year contract to IBM to support digital transformation

Oriflame, a global cosmetics company, has signed a long term partnership with IBM  to outsource its IT and financial operational services.

This partnership will support the continued digital business transformation of Oriflame in the IT and finance areas.

IBM is expected to bring new levels of customer focus, productivity and automation to Oriflame's technology and internal processes.

Oriflame chief financial officer Gabriel Bennet said: "For Oriflame, already being advanced in the online area, this partnership will be another leap forward in our digital business transformation.

"IBM’s innovation in cognitive analysis for IT and financial transactional services will provide us with valuable business insights.

"Oriflame will continue to manage the IT portfolio and develop its core systems.”

This seven-year contract is valued at €46m.

It will provide Oriflame with annual savings of around €3m, which will be re-invested in its continued IT development.

Oriflame stated that IBM’s expertise in analytics, cognitive systems and cloud-based services will be an ideal fit with its growth strategy.

During the contract period, IBM will introduce cognitive tools, based on its proprietary technology Watson, for spend analytics, payment terms optimisation and cash forecasting to provide insights to allow reduced costs.

Cloud-based enabling tools will improve consistency, accuracy and efficiency.