outsourcing 18052010 at carnegie (2) - tieto · 2003 ericsson r&d outsourcing 2001 nokia...

CarnegieIT i iIT-seminaari18.5.2010 Helsinki

Seppo Haapalainen, CFOTieto Oyj

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Drivers for outsourcinggby Gartner

1. Achieving cost takeout or greater cost predictability2. Improving IT services to end users3 F i b i3. Focusing on core business4. Achieving speed, agility, flexibility or innovation5 Aligning IT and business goals5. Aligning IT and business goals6. Access to technical or industry specific expertise7 Focusing internal staff on more strategic tasks7. Focusing internal staff on more strategic tasks8. Funding IT projects through an outsourcer9. Removing assets from balance sheetg10.Responding to senior executive mandates to outsource

© 2009 Tieto Corporation Gartner Publication Date: 2 July 2009/ID Number: G00169247

Co-location, hosting and data centre outsourcing: Towards the infrastructure utility and the Cloud

Outsourcing/ Infrastructure utility Cloud servicesOutsourcing/Hosting Infrastructure utility Cloud services

Cloud Application Infrastructure

Data CentreOutsourcing S i li d Pl tf Infrastructure

(Application Platform as a Service)

Outsourcing

Application

Specialized Platforms IU4 SAP, Exchange, Dynamics, …

ApplicationHosting

Utility Servers, Storage, … Virtual DC

Utility HostingDedicated Managed Hosting Cloud System

Infrastructure

g ,

Shared HostingVPS Hosting

Infrastructure

© 2009 Tieto Corporation

Shared HostingCo-location

Global delivery, Key part of today’s y, y p youtsourcing strategy – why?

© 2009 Tieto Corporation4 2009-07-01

Source: Gartner group June 2009.

Gartner Publication Date: 2 July 2009/ID Number: G00169247

Why Tieto?

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BigBig enough to do the job, Small enough to

• 17 000 IT professionals in close to 30 countriesSmall enough to

care.countries

• One of the leading IT service companies in Northern Europe and global leader in selected segments

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global leader in selected segments• Net sales in 2009 EUR 1.7 billion • Founded in 1968

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Tiet

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Industry expertise and customer centricityy p yas competitive advantages

Experience

Easy to work with ExpertiseCapabilities

CustomerCustomerrelations


Your agenda is our agenda

Customers’ agenda Where we can help

GrowthNew service based revenue streams

I d l & tIncreased sales & customersatisfaction

E h d b i d

EfficiencyEnhanced business andinformation processes

Improved efficiency of

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Improved efficiency ofIT operations

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Partnership hi 2007

2008

TietoSaab Systems with defence aviation

FinanssiData with Finnish cooperative bank OP-Pohjola group & pension insurer Ilmarinen

historyExtensive contracts with paper industry companies

TietoEnator Esy with Finnish pension insurance companies Varma, Fennia, Veritas & Sampo

2006

2007 TietoSaab Systems with defence, aviation, space & civil security company Saab

Extensive contracts with paper industry companiesUPM Kymmene & StoraEnso

TietoIlmarinen with Finnish pension insurance company Ilmarinen

2004

2005

Most important AM & AD partner with TeliaSonera2003

Ericsson R&D outsourcing2003

Nokia R&D outsourcing2001

TietoEnator Broadcasting IT with Finnish Broadcasting company

2002

Tietokesko with Finnish retailer Kesko2000

Tietokarhu with Ministry of Finance, Tax administration1998

TKP Tieto with Finnish pension insurance companies ETK, Mela, Etera, MEK

1998

Primasoft with Sampo Bank. Broadening of the scope 2002 by If insurance Finnish IT

2002,1996

© 2009 Tieto Corporation9

Fidenta with Nordea. Broadening of the scope 1997 by IT of KOP

1997,1994

Helping Telecom to recover from theIT bubble

Nokia Siemens Networks AM Services globally 75 FTE’s in several countries2009

2008 Elisa AM Outsourcing – 110 Applications from competitor

75 FTE s in several countries

2007 BenQ Global / Poland, 140 FTE OutsourcingTelecom Italia Italy 300 FTE Outsourcing

RTS Network, Poland, 110 FTE Outsourcing

2005

2006

Comnet, Italy, 160 FTE Acquisition / OutsourcingIT Alise Latvia 200 FTE Acquisition / Outsourcing

Siemens Communications Global, 250 FTE OutsourcingTelenor Business Consulting, Norway 40 FTE Acquisition/Outsourcing

2004

2005

S.E.S.A Germany, 680 FTE Outsourcing / Acquisition

IT Alise Latvia, 200 FTE Acquisition / OutsourcingTeliaSonera, Finland 101 FTE Outsourcing

2003

2002

Ki Consulting Sweden, 770 FTE Outsourcing

Nokia Global, 100 FTE OutsourcingEricsson Global 860 FTE Outsourcing


2002 Ericsson Global, 860 FTE OutsourcingNokia Networks Global, 320 FTE Outsourcing

Tieto’s experience in outsourcing

More than 500 outsourcing or acquisition deals during th tthe recent years

• TOP 20 deals include 5 177 employeesA i 250 l d l• Averaging 250 employees per deal

• Covering the following countries: Finland, Sweden, Germany, Latvia, Italy, India, Norway, Poland, Denmark, the UK

• Tieto rated as the biggest Nordic outsourcing partner by DagensTieto rated as the biggest Nordic outsourcing partner by DagensIndustri, spring 2009


Flexible ways to deliver

Risk sharing & reward models• Various pricing and• Various pricing and

partnership models e.g.• Performance based pricing, not

&just Time & Material• A joint venture approach include

• Risk and reward sharingg• Preservation of control• Re-transferability of people


Tieto’s global delivery model Capability to scale

Lithuania: Vilnius Latvia:

RigaC h

• Capability to scale

• Largest network of delivery

centres in Eastern Europe

China: BeijingChengdu, H h

Belarus: Minsk

Czech: Ostrava • Strong capabilities and

delivery models

• Industry know-how

India: Pune,

Hangzhou

Poland: Wroclaw

y

• Experienced employees

• Nordic HR and leadership Bangalore

oc astyle

• Easy to work with


Mature skillsMature skills


outsourcing 18052010 at carnegie (2) - tieto · 2003 ericsson r&d outsourcing 2001 nokia...

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