TietoEVRY Unveils New Business Strategy with Focus on Cloud Solutions, Financial Services

TietoEVRY is announcing its new strategy to promote better customer value and growth via specialization.

The technology industry is being transformed with the Cloud as the foundation, offering expansion opportunities for the firm. Expansion will mainly focus on Cloud-native services, data & software engineering and scalable software businesses.

In managed application and infrastructure services, the firm will aim to enter partnerships to invest and build scale. The company “confirms its 5% growth and 15% adjusted EBITA targets for 2023 while the new strategy supports potential for enhanced performance.”

Hyperconnected data, enabled by Cloud, is “redefining customer priorities and reshaping the technology industry,” the announcement noted while adding that these trends are “widening the divide between Cloud-native services and software with high growth, and traditional managed services in which automation and scale are important drivers for competitiveness.”

TietoEVRY’s management noted that their strategy will be geared towards driving specialization and focus. Investments will be “focused on businesses where the company sees competitive advantages and sustainable growth: cloud-native services, data & software engineering and scalable software businesses, including their global expansion potential.”

In the areas of traditional managed application and infrastructure services, the company “sees new partnerships as potential means to build scale and pursue joint investments.”

The announcement also mentioned:

“To capture the momentum of Cloud-native and software market, TietoEVRY is establishing six specialized end-to-end businesses. These businesses will have full operational responsibility, including go-to-market, service portfolio, investments and partnerships. Reflecting the distinct market dynamics of each, the individual businesses will have optionality to scale, and prioritize investments.”

These businesses, created on the solid foundation of the current service lines, include: Business Design & Engineering, Health & Care Software, Financial Services Solutions, Industry Software, Enterprise Modernization and Cloud Platform Services.

The following investment “priorities” will drive competitiveness and value creation in each business:

  • Invest to expand in Business Design & Engineering, Health & Care Software and Financial Services Solutions – invest to accelerate products, services and capabilities; prioritized M&A.
  • Partner to scale in Enterprise Modernization and Cloud Platform Services – invest in capabilities to drive scale and automated managed services; seek partners (operational and structural) to jointly invest and scale.
  • Focus for value in Industry Software – optimized investments for selected businesses and develop portfolio to increase focus.

TietoEVRY Group will be supporting the businesses via scalable common functions (Finance, Strategy, global Operations and HR) “driving portfolio development, performance management and efficiency across the company.”

As stated in the announcement:

“The global technology market is going through a profound change as the market is becoming cloud-enabled and new technologies are at the core of enterprise business renewal. This is the right time to renew our strategy, also in light of our integration progress, and capture the opportunities stemming from the high-growth markets for cloud and software.”

Kimmo Alkio, the President and CEO, stated:

“The direction we are setting today is the biggest change in the company’s history – and we are taking a quantum leap forward in our potential. I trust these changes will also be highly rewarding to our employees, as we will all gain enhanced learning opportunities and a sense of pride from our individual contributions to our customers’ success. I am excited to embark on this new phase and the opportunities it brings to unlock the full potential of our global team of 24 000 experts – towards solutions that make a world of difference.”

For more details on this announcement, check here.

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