Canada Post to transform its information technology model

Canada Post to transform its information technology model

Canada Post is transforming its information technology (IT) model to better serve the changing needs of Canadians and businesses and continue to lead in the rapidly evolving parcel delivery market.

The postal service announced last week that it has entered into an agreement to transition Innovapost – its IT shared-service provider – to Deloitte Canada, a leader in IT operations and solutions that is known for addressing complex business challenges with world-class capabilities, insights, and service.

With e-commerce set to double in Canada over the next decade, powerful IT is essential for the retail economy and for Canada Post. The changes announced will help Canada Post better deliver the digitally enabled products and services Canadians need, while ensuring the postal service continues to be a vital economic link for the entire country.

“Today is the start of an exciting journey to transform Canada Post’s information technology model so that we can better meet the demands of our customers, particularly in the competitive parcel market,” says Doug Ettinger, President and CEO of Canada Post. “This change not only enhances our strategic focus, it also ensures we have the world-class expertise in place to deliver results for Canadians.”

“We welcome the opportunity to provide Canada Post with strategic support to serve the changing needs of their customers and Canadians more broadly today, and to make available the latest technologies needed to build an inclusive and resilient digital future,” says Anthony Viel, CEO at Deloitte Canada. “The Innovapost team will complement our team to inspire innovation, collaboration with organizations to evolve their business, economic growth and productivity. Collectively, we will chart an accelerated path enabling Canada Post to remain competitive and grow in today’s disruptive technology landscape.”

A new CIO organization

As part of the transition, Canada Post will retain from Innovapost the expertise needed in-house to provide strategic leadership for the company’s IT agenda and the agility to bring innovations to customers faster. Franco Chirichella, President and CEO of Innovapost, will become Canada Post’s new Chief Information Officer, leading a team of former Innovapost leaders who will also transition to Canada Post in the new organization, or other roles supporting the Corporation’s IT transformation.

Establishing a new strategic partnership

As part of the agreement, Deloitte will deliver and support Canada Post’s day-to-day IT operational services. The majority of the organization’s talented employees will be integrated with Deloitte to provide for a seamless experience for Canadians and businesses.

Going forward, Deloitte Canada will provide IT services to Canada Post and its Group of Companies. This collaboration brings together an effective mix of talent, technology, and business capabilities to achieve desired outcomes and continued growth in highly competitive markets.

Background

Located in Ottawa, Innovapost has been an important partner for the Canada Post Group of Companies. Following a detailed examination, it was determined the current shared-service model was not providing the speed and agility needed to compete today and in the future.

The sale and agreements with Deloitte Canada follow a comprehensive, multi-stage bidder selection process. It will provide Canada Post with the world-class IT support and expertise needed to deliver more for Canadians and Canadian businesses. This transformational transaction is expected to close in the coming months, subject to customary closing conditions.

The Canada Post Group of Companies’ operations are funded by revenue generated by the sale of its products and services, not taxpayer dollars.

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