Tieto's offering development costs totalled around EUR 50 million in 2014, representing 3.2% of net sales (EUR 40 million in 2013, representing 2.4% of net sales). These costs comprise service and product development with the focus, for example, on Customer Experience Management, Industrial Internet and Lifecare, Tieto's product for the healthcare and welfare sector, as well as cloud services and selected industry products. Additionally, the costs related to standardization in application management and automation in managed services are included in this amount. Development costs for major new business concepts and software products are capitalized as intangible assets if they fulfil the requirements stated in the accounting principles. No development costs were capitalized for either 2014 or 2013.