|Traded as||OMX: TIE1V|
|Industry||IT services, IT consulting|
|Key people||Markku Pohjola (Chairman), Kimmo Alkio (President and CEO)|
|Services||IT, business consulting and outsourcing services|
|Revenue||€1.825 billion (2012)|
|Operating income||€61.3 million (2012)|
|Profit||€29.4 million (2012)|
|Total assets||€1.185 billion (end 2012)|
|Total equity||€556.3 million (end 2012)|
|Employees||16,537 (FTE, end 2012)|
Tieto Oyj (until April 2009 TietoEnator) is an IT service company providing IT and product engineering services. Tieto aims to become a leading service integrator creating the best service experience in IT. Active in more than 20 countries with approximately 16,500 employees, Tieto is one of the largest IT service providers in Europe. Tieto is domiciled in Helsinki, Finland, and the company's shares are listed on the NASDAQ OMX Helsinki and Stockholm.
The company provides services to the following sectors: financial services; manufacturing, retail & logistics; public, healthcare & welfare; telecom, media and energy.
The number of full-time employees amounted to 16,537 at the end of December 2012. Of Tieto's personnel, 32% is located in Finland, 18% in Sweden, 12% in Czech Republic, 9% in India, 8% in China, and the rest spread across other countries. As of 2012, 54% of Tieto's shareholders are Finnish and 4% are Swedish. 27% of the 16.500 employees worldwide are women. Net sales by country was Finland 45%, Sweden 32%, and International 23%.
The company started its business operations in Espoo, Finland in 1968 under the name Tietotehdas Oy. During the first years, IT systems were developed and maintained mainly for Union Bank of Finland and its customers, and for a few forest industry companies.
The customer base of the company grew during the 1970s represented several industries and operations were organized according to these verticals. During the 1990s, the company experienced rapid growth through a number of acquisitions, mergers and strategic alliances. The company's name was changed to Tieto in 1998. In 1999, Tieto and the Swedish Enator corporation merged, and TietoEnator was born. On 1 December 2008, the company re-launched the corporate brand and marketing name Tieto (which means knowledge in Finnish). The official registered name is Tieto Corporation, and the corporation is lead from the headquarters at Helsinki. The current President and CEO is Kimmo Alkio, effective from November 2011.
Tieto operates in Norway as the subsidiary Tieto Norway AS. The business in the country was developed by a series of acquisitions, starting in 1989 when Enator AB acquired the Norwegian IT consulting company ISI AS.
Other significant acquisitions were Ementor Financial Systems in February 2002, followed by DaWinci Services AS in December of that year. The latter acquisition gave control over the offshore Personnel Transportation & Tracking Solution giving Tieto Norway a 100% market share on systems for operating the Norwegian Continental Shelf personnel movements.
In 2010, there was a major demerger by a group of employees of Tieto Norway that broke out to form the company Hytracc Consulting. The new company has established partner offices in the vicinity of the Tieto's offices, hence both companies are providing services for shared customers of the Tieto Energy Components system.
In 2005, Western Norway Regional Health Authority, Norwegian Helse Vest RHF, signed an agreement with TietoEnator Norway for the delivery of a system for Electronic health records. By end of 2007 it was announced that Helse Vest RHF concluded its customer relationship with the company and announced a lawsuit against TietoEnator. They claimed that they had spent time, resources and efforts on the initial project without seeing TietoEnator being able to deliver, and announced that they were going to claim compensation from TietoEnator. - The word disaster is appropriate, Eric Hansen of Helse Vest RHF, expressed to Finansavisen. Likewise, Southern Norway Regional Health Authority, Helse Sør, experienced their frame agreement from 2004 to make no deliveries, and Helse Sør also considered legal action. For the fiscal year 2007, TietoEnator Norway did record a loss of NOK -124,336,000. (net profit/loss of the financial statement, as reported to Brønnøysund Register Centre.)
While TietoEnator Norway employed more than 1000 people in 2002, there was a further decline in the number of employees in Tieto Norway from 669 to 477 employees over the period from 2007 to 2011.
The current activities in Sweden is undertaken by a subsidiary Tieto Sweden AB based on restructure of the former Enator corporation. Enator corporation was formed in 1995 when Celsius AB, a Swedish public company, merged its IT operations that had been acquired between 1991 and 1994. Until 1994, there were IT operations in three separate subsidiaries: Telub, Enator and Dialog. The merger of the three subsidiaries led to a restructuring program in 1997. In spring 1996, the corporation was listed on the Stockholm Stock Exchange under the name of Enator.
During 1998 Enator conducted a series of acquisitions to strengthen the company's exposure to the public sector. The company acquired 51 percent of shares in a Stockholm-based consulting firm Programmera. In addition, the company took over two small IT companies - Kvatro Telecom in Trondheim, Norway, and Soft Project in Hamburg, Germany - and divested operations in Enator Telecom Mechanics. In April 1999 Enator acquired NetDesign in Denmark. After Enator - Tieto merger in July 1999, the Enator brand was discontinued.
On 25 november 2011 there was a hardware failure in one of Tieto's Swedish data center, which affected some 50 of its clients, including Apoteket (national pharmaceuticals retailing; e-prescriptions were out of service), Bilprovningen (Swedish motor vehicle inspection, inspection was done by manual support), SBAB Bank and Stockholm Municipality school web site. Kristina Westerlind, Head of Marketing and Communications at Tieto Sweden, commented on the incident to Dagens Nyheter: - It is a hardware failure that is very difficult to predict at this time how long it takes to restore everything to normal. It can go fast or it could last a long time. On November 30, Tieto services for Apoteket e-prescriptions and SBAB were recovered and operating again. On December 13, all services was virtually back to normal operations. Confidentiality agreements with customers prevented Tieto to tell exactly who was affected by this incident. On February 22, 2012 the Swedish Civil Contingencies Agency published a report on Reflections on community safety and preparedness for serious IT incidents In March 2012, Tieto released a report investigating the incident.
Though Tieto claims that working at the company should be enjoyable and rewarding, Tieto scores a grade of 2.8 in the scale from 1 to 5, assessed by their own employees, on the jobs and career community site Glassdoor.com.
Tieto claims a strong commitment to responsible operations, as outlined on its corporate website via their Corporate responsibility reporting in accordance with Global Reporting Initiative guidelines. Their reporting of 2011 has the application level A+. The performance data, disclosures and statements were assured to a moderate level in accordance with the AA1000 Assurance Standard (2008).
At the end of 2011, a new Supplier Code was created to complement Code of Conduct in use. The Supplier Code aims to sharpen control of suppliers and partners in order to prevent corruption and support human and labour rights. Several social sponsoring activities (both financial and pro-bono) were conducted during the 2011. One of the projects supported is the UNICEF programme “Schools for Africa”. Tieto has also continued to support the Identity Foundation´s mobile learning centres for underprivileged children in Pune, India.
Energy Components (EC) is a Hydrocarbon Accounting software product used to allocate units of aliquots of produced hydrocarbons back to its origination based on their current disposition like a temporary storage tank or a sales point. It holds accounts for oil and gas ownership for the hydrocarbons based on the production field equity share of every single partner company. The product monitors hydrocarbons from the start of movements in the production process following the streams through transportation, storages and sales. Benefits of the EC product includes oil and gas production scheduling and petroleum reservoir management, giving transparent and auditable accounts, it reports production data to regulatory authorities and partners, counteracting potential for disputes between partners and with governments. Tieto is providing services for planning, design, customizations and configuration of product installations, and also gives lifecycle support. Customers share their experiences and maintains common interests through EC User Forum. In April 2012, more than 100 customer representatives from more than 20 countries participated in the annual gathering.
The product has origins in the Prosty-system, developed internally at Statoil, which Statoil conveyed to Tieto for commercialization. Competitors include Field Operations & Production Accounting solutions from Merrick Systems, Inc., P2 Energy Solutions and software from WellPoint Systems.
Energy Components (EC) is also the publicly known naming on the Tieto Norway entity that delivers the EC and PTS/DaWinci products and related services in partnership with the breakaway company Hytracc Consulting.
Personnel Transportation & Tracking (PTS/DaWinci) is a software product that helps oil companies to schedule, execute and account for the personnel transportations between ports and locations that need mobilized crew in connection with operations in the oil and gas industry. Transportation type may include inter field shuttles. Ports may be land based heliports. Operational locations may be any type of offshore platform, vessel, FPSO, or onshore plant. The product tracks personnel movements and assist platform management at offshore locations in administering the emergency preparedness, the accommodation units and supports the lifeboat allocation and muster drilling.
Benefits of the product includes updated Personnel On Board information, optimized helicopter utilizations, cost allocation between user companies on shared flights, and adherence to regulatory emergency preparedness functions.
The PTS/DaWinci product origins from a system developed as a joint venture between Statoil and Hydro Oil & Gas that Tieto Norway took over in an acquisition of the company DaWinci Services AS in 2002. Competitors include Collabro Personnel-On-Board Management, Asset Integrity Personnel On Board (POB), and the Logistics Management System (LMS).
Specific expertise areas offered to customer services are within Banking and insurance; Telecom, automotive and media; Healthcare & welfare; Forest, Energy, Manufacturing; Retail and logistics; Public; ICT operation management.
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