Nacka extends outsourcing agreement with Tieto


WEBWIRE – Friday, February 07, 2014

Nacka municipality, one of the fastest growing municipalities in Sweden with about 95 000 residents, is extending its operating agreement with Tieto. The contract is worth SEK 45 million and is valid until 2017.

“We’ve outsourced to Tieto since 2009 and are satisfied with the arrangement. The extension is the result of good collaboration in which Tieto has both improved the quality of our IT services and made them more cost-efficient,” says Mats Bohman, administrative director at Nacka Municipality.

Swedish municipalities have historically been cautious about outsourcing, but Tieto, one of the largest providers of IT services to municipalities in Sweden, is noticing a growing interest.

“Nacka’s extension confirms the benefits municipalities enjoy by outsourcing IT to a provider with strong resources. We are extremely pleased and proud of this confirmation of renewed confidence,” says Andreas Nilsson, Tieto’s business area manager for municipalities in Sweden.

Tieto took over system maintenance from Nacka’s IT department in 2009, including a transfer of IT personnel from Nacka to Tieto. Since then, Tieto has developed IT services for the municipality through greater use of cloud services and by elevating the level of service. New business models and technology provide a clearer cost base, thereby increasing Nacka’s flexibility in choice and scope of services.

The extension comes at a time when public and private demand for IT services has dramatically increased in terms of accessibility, service and security. IT is expected to continue to undergo rapid development with strong trends such as smartphones, tablets, and increased mobility among users, as well as a need to improve opportunities for employees to work where it suits them best. “In order to be a leading municipality in the IT field, we need to interact with an innovative and motivated provider,” says Mats Bohman.

Tieto is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. Tieto is committed to developing enterprises and society through IT by realizing new opportunities in customers’ business transformation. At Tieto, we believe in professional development and results.

Founded 1968, headquartered in Helsinki, Finland and with approximately 15 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.8 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.

Nacka municipality is a rapidly growing area southeast of Stockholm with about 95,000 residents. It features large green areas, lakes, coastal areas and archipelagos. www.nacka.se



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