Investments and development
The company has maintained its investment levels to accelerate innovation through offering development for high-growth businesses as well as acquisitions. Additionally, the company will continue to invest in standardization and automation to drive improvements in productivity and quality.
Full-year capital expenditure totalled EUR 50.8 (61.6) million, of which paid EUR 47.0 (61.7) million. Capital expenditure represented 3.3% (4.1) of net sales and was mainly related to data centres. Net payments for acquisitions totalled EUR 49.3 (37.6) million.
Tieto’s offering development costs remained at the previous year’s level at close to EUR 75 million, representing 5.0% of Group sales (EUR 75 million in 2016, representing 5.0% of net sales). These costs comprise service and solution development focusing on, for example, industry-specific software, Customer Experience Management and Security Services, as well as cloud services. Additionally, the costs for related internal development, such as automation in infrastructure services, are included in this amount. No development costs were capitalized for either 2017 or 2016.