IT market and key drivers

The market Tieto operates in is estimated to grow by around 2% in 2016. Emerging services are estimated to experience double-digit growth while the decline in traditional services will continue.

Higher activity level in the Swedish market is expected to remain. In Finland, the challenging macroeconomic environment will continue to affect the IT services market.

Tieto's business mix

Digitalization enabled by new technologies is increasingly affecting all industries and industrial processes. It is already normal for consumers to have access to everything 24/7, including self-services and personalized digital experiences. In seeking to ensure their market position in the rapidly changing competitive landscape, customers’ focus has been shifting to the digitalization of their businesses.

In IT spending, emerging services are gaining ground while traditional services, such as infrastructure services, are seen as a source of cost reductions. This trend has been enabled by service delivery standardization and industrialization. Going forward, IT service providers will continue their investments in automation and productivity improvements