Tieto Outsourcing Framework for Modernization - a strategic business change tool

Tieto Outsourcing Framework (TOF) for Modernization is a well-defined and proven modular model for executing and delivering large-scale modernization initiatives. It is distinctly different from the narrower focuses of shared services, application development and outsourcing strategies. It supports the dual challenge faced by organizations today.

Tieto Outsourcing Framework for Modernization supports the optimization of companies current legacy IT landscape, meanwhile aligning IT to support the ever-changing business strategies in the digitalized world, enabling top line revenue growth. 

Evolving world of modernization

We see a continued shift in the expectation from modernization and the businesses today are looking at modernization as a strategic initiative not only to cut costs but also to help increase business.

Business needs partners to help both optimize and growth.

Tieto Modernization Framework

From the changes taking place in the market companies must quickly modernize their ways of doing business, how they operate and how they interact with their customers. Fluctuating demand and rapidly changing buying patterns require agility in both behavior and systems when reacting to changes and implementing new innovations. The modernization must take place at present, or preferably reduced, cost levels, meaning that operations must be made more efficient.

The only way of achieving this dual goal - meet the changing customer needs while optimizing operations - is to digitalize operations as far as possible. Digitalization means that suddenly IT takes on a prominent role as business enabler. 

  • The evaluation of modernization clearly indicates the urgency and importance of moving from a typical project-based out-tasking to strategic modernization (strategic partnership).
  • In today’s business environment nine out of ten enterprises have managed services and 97% manage modernization relationships. However, the majority are yet to benefit from combining shared services and modernization into one integrated global business services framework.
  • Companies are looking for better ways of managing multiple strategic providers. Alliance offerings from outsourcers are gaining traction.
  • The trend and requirement today is to move from “IT as a support function” to “digital business enabler”.

Does your present IT prevent or promote the new way to do business? 

Realize your digitalization journey

Tieto Outsourcing Framework (TOF) for Modernization identifies customer objectives, challenges and business aspirations to define a model that combines the competencies of all stakeholders to drive business outcomes. The TOF framework is supported by business and service value agreements that ensure the delivered services live up to the customer’s business expectations. The services not only ensure cost optimization, but also achieve agility for future with modern technology and skills.

Tieto Modernization Framework model

Objectives & benefits

Operational efficiency:

  • Reduce total costs by leveraging Tieto’s Global Delivery Model (GDM) and industrialised delivery services.
  • Synergy benefits through shared competencies and services.

End-to-end business value:

  • Establishing joint, effective real-time governance brings a high value impact at strategic, tactical and operational levels.
  • Business value measurement through joint business-aligned KPIs.

Business agility:

  • Ability to ramp services/capacity up or down based on business demands.
  • Transform to a modern cost landscape through transforming CAPEX to OPEX.
  • Shorter time to market and access to new technologies.

Quality & innovation:

  • Promote continuous innovation and process improvements through standardised ways of working.
  • Quicker introduction to market for new and innovative services.

​Full range of services covering the entire IT delivery chain.

Execution approach

Tieto Outsourcing Framework for Modernization has a clear execution approach. It provides end-to-end service for application management, infrastructure management and business processes.

Tieto Modernization Framework model


  • Process and tool standardisation.
  • Service portfolio assessment, people and competencies.

Service delivery

  • Well-defined KPIs
  • Real-time governance and visibility.


  • Business Value Agreement.
  • Continuous service improvements.

​Credentials and proven track record supporting your transformation journey

Tieto has been a major player in the IT services business for more than four decades. During that time, we have helped our customers better manage their cost of running IT services, meanwhile helping  them into a new way of doing business in digitalized world. The result: lower IT costs, better business agility and more space for investment in new business opportunities. This shift from heavy capex orientation toward a more lightweight, opex-based solution not only reduces cost - typically 30 to 50% - but also makes both the IT and the business more resilient in the face of future needs and changes. Here are some examples.

Tieto Modernization Framework


Tieto provides a full stack of services based on Nordic business values. Most of our customer relations extend over many years. As a result, Tieto can help customers better manage their IT cost and enable them to invest in new initiatives. Our modernization customer references speak for themselves.   

Modernize your IT to optimize your performance today and enable growth and innovation for a future-ready tomorrow. It is important for your business - your competitors are already making the change.



Manish Kumar
Head Offering Management & Customer Enablement
Minna Virtanen
Lead Offering Manager