Major agreements

During the year, Tieto signed a number of new agreements with customers across all the industry groups. However, according to the terms and conditions of these agreements, Tieto is not able to disclose most of the contracts.

In January, a collaboration group of Norwegian municipalities (DGI) selected Tieto as its supplier of a new delivery platform for the six owner municipalities. In September, Norwegian municipalities initiated negotiations to review the scope of the agreement, and the parties decided to terminate the agreement in the fourth quarter. Its total value of approximately EUR 22 million has been deducted from Tieto’s order intake and order backlog.

In January, Tieto signed an agreement to digitalize Region Blekinge’s document and case management system with a new cloud-based service, Public 360°. The digitalization will result in faster, more efficient and more flexible information management and will pave the way for Region Blekinge’s integration into the Blekinge County Council in 2019.

In January, Tieto took over the full responsibility for the next development phase of the eCommerce and omnichannel operations solution of Granngården, a major retail chain in Sweden. With this new solution, Granngården aims to develop their customer experience and to lay the basis for online revenue growth and seamless omnichannel experience.

In February, Tieto signed an outsourcing agreement with the municipality of Järfälla in the Stockholm region. The purpose is to provide future-proof application and IT services that will ensure a smooth digital transition and make everyday life for citizens easier. The contract is initially for four years, including two extension options for a total period of up to eight years, with a value of approximately EUR 14 million.

In February, Tieto signed a four-year deal with Swedish engineering and consultancy firm ÅF to modernize the company’s IT infrastructure around the world. The contract extends Tieto’s strategic partnership with ÅF and will help the firm pursue its aggressive growth targets with the help of cutting-edge cloud services and workplace solutions. Tieto will upgrade ÅF's IT infrastructure in offices across six different service areas, including Server and Storage through Tieto OneCloud.

In February, the Finnish Prime Minister’s Office, Government ICT Centre (Valtori) and Tieto signed an agreement to digitalize case and document management within the ministries and governmental agencies in Finland. The assignment is one of the most significant digitalization projects in the country, supporting the nationwide transformation of central government administration. The agreement with Tieto is valid to the year 2020 and is intended to enable a gradual transition toward digital management of everything from case and document processes to electronic archiving.

In February, Tieto signed a three-year contract with SCA, Europe's largest private forest owner, to handle SAP Application Lifecycle Management Services, whereby Tieto will be responsible for application management and development. The aim is to help SCA follow industry best practices and at the same time ensure business continuity and lower application maintenance costs.

In March, Apoteket Group, a state-owned pharmaceuticals retailer in Sweden, extended their current Application Service Management contract with Tieto for an additional period of three years. The agreement provides Apoteket with a cost-effective solution combined with high availability to applications. The contract has an estimated value of EUR 4 million.

In March, Tieto signed an outsourcing agreement with Folksam, an insurance company in Sweden. Folksam and Tieto continue to develop their partnership with this outsourcing agreement under which Tieto takes over the responsibility for Folksam’s IT operations in Östersund, Sweden. Based on the agreement, Folksam IT operations’ employees in Östersund will be offered employment at Tieto. This will further strengthen Tieto's position in the Swedish market and will add valuable expertise in application management and consulting services.

In March, HSB and Tieto concluded a new three-year agreement on infrastructure services with an estimated contract value of EUR 7.8 million. HSB, the largest Swedish housing cooperative, was looking for an IT partner to help the organization build a coordinated IT infrastructure for its affiliated regional associations. Tieto’s solution, based on SPOC Service Desk, OneCloud services, network services, application operations and customized infrastructure services, facilitates collaboration based on flexible standards while achieving a 30% reduction in costs for IT operations in a pay-as-you-use model.

In March, Tieto signed a five-year contract with Outokumpu whereby Tieto will supply Outokumpu with next generation infrastructure services. Tieto provides Outokumpu with multi-cloud capabilities based on its OneCloud solution, a combination of public and private cloud capacity platforms with a unified service experience. With Tieto’s solution, Outokumpu enhances its competitiveness by improving operational efficiency through global standardization and decreased time-to-market.

In April, the energy company Vattenfall selected Tieto to deliver its Tieto Smart Utility for Vattenfall Distribution and Vattenfall Retail in Sweden based on two separate procurement processes. The new system will increase efficiency by digitalizing and automating the customer’s core business processes, such as sales, customer services, work flow management and billing.

In April, Turku Energia, one of Finland's largest energy companies, selected the Tieto Smart Utility cloud service solution to support its energy retail and distribution businesses and its district heating, steam and cooling businesses. Tieto's Smart Utility will increase efficiency by digitalizing and automating the client’s key processes and enabling seamless connection with the datahub, a forthcoming centralized information exchange solution for energy companies.

In May, the Finnish Transport Safety Agency, Trafi, signed a framework agreement to purchase information system services from Tieto. Tieto's experts will develop and maintain Trafi's information systems for road traffic, maritime, boating and information services. The contract period is valid from 2017 to 2021.

In May, Tieto and Fora, a service company that offers administrative solutions for collective insurance agreements and fees for parties on the labour market, signed an agreement extension on cloud and capacity services. The extended agreement continues to entail flexible and secure cloud solutions with high availability for both infrastructure capacity and business-critical ERP systems. The solutions will help Fora strengthen continuity in operations as well as improve IT processes, resulting in reduced costs and increased flexibility.

In May, Tieto signed an outsourcing agreement with Inwido AB, Europe's largest supplier of windows and a leading door supplier, to deliver service desk, end user and infrastructure services. The contract is for five years and has a total value of EUR 6 million. The first signed agreement covers Sweden and several global services.

In June, Tieto signed an agreement with Lecta, one of the leading manufacturers and distributors of specialty papers for labels and flexible packaging, coated paper for publishing and other high value-added print media, to deliver the implementation of Tieto’s paper solution template, integrating SAP with TIPS, Tieto’s Mill Execution System product. During 2016 and the beginning of 2017, Tieto successfully completed a blueprint for streamlining and harmonizing Lecta’s business processes based on Tieto’s industry-specific Paper Solution Template. Tieto will by April 2018 implement the defined processes in SAP to create a common template for seven paper mills and support the rollout process. This will further strengthen Tieto's position as a preferred partner utilizing IT to drive and enable business change and to address the fast-changing market requirements.

In June, Tieto signed an agreement with Qliro, a Nordic company within the FinTech industry, specializing in eCommerce payments, consumer financing and savings accounts, to deliver a digital service for savings accounts. Emric, acquired by Tieto in September 2016, will deliver the underlying system (Emric’s Managed Services solution) for the entire deposit value chain from automated customer registration to administration. The solution includes the core system that comprises not only a digital self-service platform, verification through BankID, and accounting, but also staffing for general administration. The agreement has a term of three years.

In June, Tieto signed an agreement with international media group Modern Times Group (MTG) to standardize, integrate and modernize MTG's IT infrastructure by delivering data centre, end-user, service desk, security and network services. The contract is for three years.

In June, Södertälje municipality chose Tieto as its supplier of end-user IT services and the underlying infrastructure, which will take the municipality’s digitalization to the next level. Tieto will also provide the customer with service integration and management (SIAM) solutions to develop the municipality’s IT services and coordinate suppliers. The contract is for five years with an option for an additional four years, and is worth approximately SEK 140 million. As part of the deal, Tieto will deliver end-user services such as IT workplaces, service desk, e-mail and printing services, as well as infrastructure including networks, internet connections, security services and an integration platform.

In June, Tieto signed a three-year contract with Mutual Pension Insurance Company Ilmarinen to digitalize and renew insurance services and processes. Tieto is delivering competences for insurance consulting, design thinking, service design, application and front-end development, testing and a SAFe framework.

 In June, Tieto signed an agreement with Keva and Varma, two large Finnish pension providers, to deliver a new pension payment system. The three-year renewal project will create a platform for automated and modern payments. DevOps methods and automated solutions are used for system development. The new pension payment system will replace the current aging systems and will connect seamlessly to tax authorities, banks and the public pension system. Modern technologies and modularity will enable flexible developments in the future, allowing the system to adapt to new regulations in a cost-efficient way.

In June, Tieto signed an agreement with Stockholm County Council to provide application management services. This four-year contract with an option to extend by three more years has a total value of EUR 17 million.

In June, HERE, the Open Location Platform company, selected Tieto as one of their strategic outsourcing vendors. This long-term R&D cooperation contributes to HERE’s fast growth strategies and strengthens Tieto’s position as one of the leading vendors for product development services in automotive, smart traffic and IoT domains.

In September, Tieto signed an agreement with Arek, a service provider for pension companies in Finland, for a development project that is part of the customer’s programme related to the National Income Register.

In September, Nævnenes Hus, a Danish Appeals Boards Authority (part of the Ministry of Industry, Business and Financial Affairs), signed a four-year contract with Tieto. Nævnenes Hus aims to create Europe's best complaint centre within a few years. With Tieto’s Public 360° Process Engine, Nævnenes Hus will gain an improved overview, enhance its management of cases and automate manual processes. Furthermore, the client will combine historical databases with Tieto’s eArchive 360°.

In September, Cargotec and Tieto entered into a partnership in which Tieto will take over Cargotec’s overall IT service management and a major part of its solution expertise services. Tieto will take the responsibility for continuously modernizing and securing IT services and offering application development and lifecycle management services. Around 50 employees from Cargotec transferred to Tieto on 1 November 2017.

In September, the Ministry of Agriculture and Forestry together with the Agency for Rural Affairs, the Finnish Food Safety Authority and the Natural Resources Institute Finland signed a four-year contract with Tieto for continuous services and development of a shared eService environment. The provided services require very high availability and performance as well as high information security. The contract is based on the Hansel frame agreement and has an estimated value of EUR 6 million.

In September, Göteborg Energi, one of Sweden’s leading energy companies, chose Tieto Smart Utility for its distribution and retail business. The system increases efficiency by digitalizing and automating core business processes such as sales, customer services, workflow and output management and billing. This will help improve the experience for approximately 600 000 energy retail and distribution customers. Tieto Smart Utility complies with regulatory requirements in the energy market and provides a seamless transition to the coming supplier centric model. The initial contract has a duration of five years, with an extension option for another five years.

In October, the Swedish municipality of Haninge selected Tieto to supply it with user-friendly IT services. Under the agreement, Tieto will deliver a modern IT workplace to facilitate the work of both school students and the municipality’s administrative staff. The new solutions are in line with Haninge’s overall digitalization strategy and will render the municipality’s current work processes more efficient and enable the municipality’s staff to better communicate with citizens. The two-year agreement has an estimated value of SEK 32 million and includes an extension option for another two years.

In October, Tieto and Tampere with municipalities in the region signed a three-year agreement on Service Integration and Management (SIAM) covering major incident situations in the complex multi-vendor environment. The goal is to improve coordination and quality assurance management in IT. The agreement includes SIAM Ticket Lifecycle Management, where Tieto takes responsibility for the coordination of solving tickets across all IT suppliers in the Tampere region. Additionally, the solution includes SIAM MIM Service, including 24/7 leadership in MIM situations in Finnish, coordination of problem solving together with all Tampere IT suppliers, coordination of root cause analysis and continuous improvement of the knowledge and instructions between parties.

In October, Tieto signed an agreement with the Norwegian Data Protection Agency to develop a national registry of Data Protection Officers (DPOs). Based on the new EU General Data Protection Regulation (GDPR), many organizations and businesses must appoint a DPO to ensure compliance with the legislation. The Norwegian Data Protection Agency is the supervisory body for the establishment of the DPOs, and the registry will be developed based on Tieto’s standardized eArchive solution.

In November, Elo, a Finnish mutual pension insurance company, and Tieto prolonged their existing contract. Under the five-year agreement, Tieto will provide Elo with infrastructure and cloud services, and create a scalable modern platform to help increase cost-efficiency and streamline operations as well as create favourable conditions for Elo’s future business and an efficient value chain.

In November, Tieto signed an agreement with the City of Stockholm to provide next-generation IT services for the city's administration and the companies owned by the municipality. The procurement includes workplace services, server and application management and service desk. The annual value of the tender was initially estimated to be approximately SEK 330 million (EUR 33 million). The contract value booked in 2017 was around EUR 80 million while the company expects the total value of the volume-based agreement to be higher than this. After the transition period in 2018, the contract is expected to have a full impact on sales as from 2019. The agreement is valid until 31 December 2023 and includes an option to extend by a maximum of six years.

In December, Tieto signed a contract with Martela, a Nordic company supplying furniture and interior solutions, whereby Tieto will deliver its Empathic Building workplace solution to Martela's head offices in Helsinki and Stockholm. Martela is harnessing its user-friendly features to improve the workplace experience of its personnel, while ensuring efficient use of its premises. Real-time data and visualized analytics dashboards add value for workplace users and provide a basis for new optimization services