House of Fraser picks Capgemini for IT services
British department store House of Fraser has announced a new agreement with technology and outsourcing consultancy Capgemini. The three-year deal, worth £15 million, will see the professional services firm work at the heart of the retailer’s IT business network.
With over 60 stores across the United Kingdom and Ireland House of Fraser is one of the country’s leading department stores. The group, established in Glasgow, Scotland in 1849, has seen mixed market result in recent times, posting a first annual profit in a decade at the start of 2016, before seeing those figures plunge dramatically by 46% in the first quarter of that financial year. Now in a bid to revitalise the company by capitalising on the oncoming era of digital disruption in the retail sector, House of Fraser has extended its partnership with consulting industry players Capgemini.
The relationship between the two has lasted seven years prior to the new three-year deal, with the £15 million agreement seeing the technology and outsourcing advisory firm now poised to be placed at the heart of the retailer’s IT ecosystem, supporting House of Fraser’s ongoing IT simplification strategy. Capgemini will also continue to provide IT infrastructure and application support, alongside additional new services designed to unlock further innovation across House of Fraser’s IT network.
CIO of House of Fraser, Julian Burnett, commented, “We have a strong and long-standing relationship with Capgemini, but were really impressed with the way in which they were able to approach this opportunity with fresh eyes and demonstrate the flexibility to support our business now and in the future.”
Capgemini, which celebrates its 50th anniversary in 2017, will also be responsible for the delivery of the Digital Service Desk, a service which provides employees with multi-channel mobile access to resolve IT issues quickly, along with an innovative Application Development and Maintenance platform. House of Fraser hope that this business process oriented, industrialised approach to service will drive efficiencies across the retailer’s applications estate. Capgemini are also tasked with enabling the cost-efficiency of these additional services through its Automation Drive tools and IP, and a programme of continuous service improvements.
Despite profit levels across the retail sector gradually returning to pre-crisis levels, uncertainty surrounding Brexit and stagnating wages have seen businesses increasingly turning to Artificial Intelligence to provide cost-cutting alternatives. With the new deal, House of Fraser aim to utilise that particular trend, with the potential savings enabling them stabilise continuously varying profit levels.
Tom Thicknesse, Head of Consumer Products and Retail at Capgemini in the UK meanwhile remarked of the continuing relationship between the companies, “As one of our key retail clients, I am delighted House of Fraser continues to count Capgemini as a major partner. Capgemini’s retail pedigree, combined with our client centricity, will help House of Fraser expedite its business’ transformational journey over the next few years. We are looking forward to continue working together.”
