Major agreements

Financial Services

In March, Tieto and LähiTapiola decided to expand their collaboration and have now signed a five-year framework agreement with an option of two additional years on application maintenance and development. The agreement covers key financial and personnel management systems and implementation of SAP software.  

In March, OP-Pohjola selected Tieto as the provider of a new platform for its customer services. The platform is provided as a Service. The total value of the agreement running over two years is close to EUR 6 million.

In June, Tieto and Arek concluded an agreement on maintenance, development and project services. The agreement runs for four and a half years.

In June, ELO selected Tieto as its infrastructure renewal partner with a total contract value of over EUR 13 million. The agreement runs for four years with an option for one additional year. Tieto and ELO also concluded a frame agreement on IT services.

In June, Ilmarinen selected Tieto as its partner for front-end renewal and maintenance.

In August, Tieto and EnterCard agreed on an extension of the existing outsourcing agreement with Tieto. The new contract is worth approximately EUR 20 million and involves the modernization of EnterCard's IT environment with new technical solutions based on cloud and capacity services. The contract runs for five years with an option for two additional years.

In September, Tieto and Varma Mutual Pension Insurance Company signed a contract for the delivery of operations management services. In addition to the traditional capacity, communication and network solutions, the five-year contract covers cloud services. The contract is an extension of the service contract signed in 2009.

In September, FOREX Bank chose Tieto to develop and renew the customer experience in their digital channels. The new delivery will provide FOREX Bank with a modern IT environment and a complete end-to-end banking solution delivered as a service. The new contract complements Tieto's current core banking installation, which FOREX Bank has used for seven years.

In October, If Insurance extended its IT infrastructure agreement with Tieto. The new contract will run for four years with an option for two additional years.

In October, SBAB, a Swedish state-owned mortgage lender, extended its IT operation agreement with Tieto to continue modernization and improve efficiency with new capacity and cloud solutions. The agreement is valid for five years.

In December, Tieto and Veritas Pension Insurance agreed to continue cooperating on infrastructure services. In addition to capacity, telecommunications and network solutions, the seven-year contract includes application management services and Tieto's cloud services. The agreement is an extension of the service contract signed in 2009.

Manufacturing, Retail and Logistics

In January, Metso and Valmet signed an extensive five-year contract with Tieto on IT capacity services. The cloud-based solution is expected to bring significant cost savings and long-term flexibility for Metso and Valmet.

In January, Mondi selected Tieto as the provider of Holistic Manufacturing Intelligence for Advanced Process Control, a sustainable performance solution for paper and board production. The project is expected to be finalized in 2016 and the total value of the agreement is around EUR 3 million. 

In March, HSB and Tieto concluded a new three-year agreement on infrastructure services with a total contract value of EUR 5 million. In April, the agreement was expanded to cover additional services in the cloud and workplace area. 

In June, Tieto and Lemminkäinen concluded a four-year agreement on infrastructure outsourcing.

In June, Onninen chose Tieto as a provider of SAP-related infrastructure services and cloud services. The agreement runs for three years.

In July, Volvo Finance and Tieto concluded an agreement on infrastructure outsourcing. The value of the five-year contract is around EUR 7 million.

In September, Tieto and UPM agreed to expand their partnership in the application management services area. The three-year agreement – with an option to extend by two years – has significant contract value. As part of the agreement, it is planned that 47 employees from UPM will transfer to Tieto.

In July, Volvo Finance and Tieto concluded an agreement on infrastructure outsourcing. The value of the five-year contract is around EUR 7 million.

In September, S Group chose Tieto to be one of its main partners for data centre and capacity services. The multiyear agreement holds significant value. Tieto will provide S Group with standardized modern services harnessing the benefits of the company's latest cloud and hybrid solutions.

In December, Tieto expanded its business intelligence and application management agreement with Kesko covering two existing and two new applications. The contract is valid until June 2017. 

In December, Tieto and RAY concluded the prolongation of a SAP lifecycle management contract. The agreement is valid for three years.

Public, Healthcare and Welfare

In January, Nacka municipality extended its outsourcing agreement on infrastructure services with Tieto. The contract value is SEK 45 million and is valid until 2017.

In February, Stockholm County Council concluded an outsourcing agreement on infrastructure services with Tieto. The contract value is close to EUR 7 million and is valid until 2015.

 In February, Tietokarhu, a joint venture of Tieto and the Finnish state, signed a contract extension enabling the Finnish Tax Administration to continue to use Tietokarhu's services in a flexible manner during 2017–2019. The value of the agreement is estimated to be around EUR 9–10 million annually.

In March, the Finnish Transport Safety Agency and Tieto concluded an agreement on infrastructure services as part of the large frame agreement with Hansel, signed in May 2013. The agreement is valid until 2021 and the contract value is around EUR 14 million.

In June, Region Skåne decided on a two-year extension to its existing contract. The contract value is EUR 11 million.

Based on the Hansel frame agreement concluded in May 2013, the Finnish Transport Safety Agency chose Tieto as a partner for managed services in the second quarter. The total value of the contract is EUR 8 million. 

In June, Tieto, the Finnish National Police Board and the Finnish ICT Agency Haltik decided to terminate the agreement on the inter-government IT system project Vitja. The parties mutually agreed that Tieto will pay a one-time fee of EUR 7.5 million to the Finnish National Police Board. In addition to the provisions reported earlier, the company booked a loss of around EUR 3 million in the second quarter. A cash flow effect of EUR 7.5 million materialized in the third quarter.

In September, Tieto and Valtori, the Finnish Government ICT Centre, signed a multi-annual agreement on data centre and capacity services. The agreement is based on the framework agreement concluded with Hansel in 2013, and it covers a significant part of the framework agreement's full potential. Based on the agreement, Valtori may acquire IT services for its own use or for its customers' use. Some of these agreements also include options to extend by additional years.

In November, the Finnish Parliament signed an agreement with Tieto in application management services area. The agreement started in 2014 and will run for three years.

In November, Tieto concluded a new agreement with Jämtland County Council on IT infrastructure services, including service desk, server operations and network operations. The deal is valued at SEK 80 million and is valid from April 2015 to December 2019. It includes an option to extend the partnership for another four years. 

In December, the Ministry of Justice, decided to prolong its existing application management agreement with Tieto for 2015.

In December, the municipalities of Haninge, Nynäs and Södertälje in Sweden prolonged their infrastructure service agreement for two years. The contract value is EUR 12 million.

In December, Tieto renewed its agreement with Aditro in Sweden for at least three additional years. Based on the agreement, Tieto will continue to deliver IT services for Aditros payroll application. The agreement is valid from January 2015 and its value is EUR 5 million.

Telecom, Media and Energy

Telecom, Media and Energy experienced a solid inflow of new contracts, mainly in the telecom and energy sectors. However, according to the terms and conditions of these agreements, Tieto is not able to disclose the contracts in most cases.  

In July, Vattenfall selected Tieto to deliver its Energy Utilities Industry Software as a Service solution (SaaS) for Vattenfall Finland. Tieto will deliver the latest cloud solutions to support Vattenfall´s retail business in the Finnish market. The contract runs for five years with an option for two additional years.