Finnish retailer Kesko partners with TCS to drive AI-powered retail transformation

Finnish retail group Kesko has chosen Tata Consultancy Services (TCS) as its strategic IT partner to modernise its technology landscape and drive large-scale digital transformation across the Nordics and Baltics.

The multi-year partnership will see TCS deliver SAP S/4 transformation, digital development, intelligent automation, and application managed services to support Kesko’s growth in grocery, car, building and technical trades. The collaboration aims to accelerate the rollout of next-generation digital services, improve efficiency, and enhance customer experience across eight countries, including Finland, Sweden, Norway, Denmark, Poland, Estonia, Latvia, and Lithuania.

Under the agreement, TCS will provide AI-enabled application managed services, using machine learning to proactively monitor the health of applications and resolve issues across Kesko’s SAP and non-SAP systems. The programme also covers hosting and modernisation of SAP environments and end-to-end support for digital applications. These services will be delivered through TCS’ ignio™ AIOps platform and its Rigor in Operations (RiO) framework, enabling predictive and proactive incident management across hybrid and multi-cloud environments.

Arto Hiltunen, Chief Information Officer at Kesko, said: “As the biggest trading sector operator in Finland and one of the largest in Northern Europe, we are always working to stay competitive and bring more value to our diverse customer base. Partnering with TCS will help us continuously improve efficiency, quality, and customer experience while maintaining resilience in an uncertain operating environment.”

TCS, which already partners with several of the world’s top retailers, brings decades of industry expertise spanning store operations, merchandising, supply chain, pricing strategies and business model reinvention. The company believes the Kesko engagement will set a benchmark for retail transformation in the region.

Subhadipta Samantray, Country Head, TCS Finland, commented: “We are excited to partner with Kesko to accelerate their digital transformation with our AI-driven solutions and deep industry expertise. This collaboration demonstrates how technology and innovation can empower retailers to adapt, enhance customer experiences, and lead in a rapidly changing market.”

Abhijit Niyogi, Head of Retail – UK, EMEA, and India at TCS, added: “The retail industry is undergoing a transformative journey shaped by technology and evolving customer expectations. This engagement reflects TCS’ commitment to building adaptive enterprises and ensuring sustainable, customer-driven growth for partners like Kesko.”

TCS has been present in Finland for over three decades and is consistently ranked among the top IT providers in the country for customer satisfaction. Earlier this year, the company launched its first Nordic Pace Studio in Stockholm, a hub designed to accelerate innovation and rapid prototyping as part of TCS’ global Pace innovation network.