Market outlook

The focus is currently on mobility, enterprise content management and enterprise resource planning (ERP) as well as new “as a service“ delivery models. Customers’ continuing cost-savings agendas drive the transformation of business systems and the renewal of old legacy systems. As a result, the outsourcing market has remained active. Areas like mobility and cloud services are expected to see double-digit growth rates while the market for traditional IT services is likely to decline.

Competition has intensified during 2013 and some vendors are actively seeking to strengthen their market position with relatively aggressive pricing. Tieto expects overall market growth of around 2% for the Nordic IT services market in the full year with IT outsourcing as the main source of growth. Due to its refined strategy Tieto is able to provide the full stack of integration and operations management services complemented with its own products. As a result of this total service offering coupled with strong offshore capability and continued improvements in cost structure, the company is well competitive in its target markets.