The strategy that we launched in 2012 together the choices we made back then make Tieto a competitive and growing company. We are over halfway through with the journey and making good progress. The foundation of our strategy is to:
- reinforce industry expertise for enterprises and the public sector
- emphasize full life-cycle IT services comprising industry products, consulting and system integration and managed services
- focus IT services in the Nordic countries and on PDS scales globally
In 2014, we have increased our investments in Customer Experience Management, Lifecare, Industrial Internet, Enterprise Cloud as well as modernization of application and infrastructure services. With these decisions we aim to seize the opportunities in the IT market set by digitalization.
During the year, we continued to follow our strategy. We reoriented our businesses for growth while implicitly aiming for efficiency in our businesses. Our overall operational and financial performance developed according to the strategic plan, even though a large customers insourcing decision caused volatility in our Product Development Service business.
Confirmed modernization capabilities. During 2014, we made good progress with infrastructure modernization through cloud services with our Nordic customers. Cloud services also exhibited high double digit growth during the year. Our investments in industrialized application management provided initial results and improved customer confidence. Industrialized deliveries including solid global delivery capabilities, provides us a strong market position.
Customer base expansion. We experienced successful expansion of our customer base especially in manufacturing, retail and in the Swedish public sector. Product Development Services gained new global customers, although the total performance was affected by the insourcing decision of a large customer.
Improved quality rigor. We improved our delivery quality especially in infrastructure services, which was driven by standardization of services. We focused especially on project quality driven by standardized processes and significant support for project management during the year. We took decisive actions together with our customers to end projects that were not reaching common objectives. Unified ways of working and delivery across all locations enabled improvement in global delivery capabilities, reaching offshoring levels of 46%.
Growth investments and innovation. We continued our investment commitment to new services across customer experience management, industrial internet and healthcare businesses. During 2014, we established an internal start-up and innovation programme to boost innovation and growth.
Our performance during the year showed solid strategy execution, resulting in improved customer confidence and overall performance of Tieto.
Looking into 2015
In 2015, we will continue to pursue growth with our growth investments, Customer Experience Management, Industrial Internet and Lifecare as well as application and infrastructure modernization. We also seek to expand growth investments to new areas both industry-specific and horizontal solutions. In addition we will take further steps in the industrialization of application and infrastructure services to achieve speed, quality and improved customer experience. This will be our first big step in digitalizing Tieto. Digitalization driving growth with new services, industrialized deliveries and needed competence renewal will be high on the agenda during 2015.