TietoEnator signs Nordic outsourcing agreement with If

TietoEnator Corporation Stock Exchange Release 18 March 2005, 11.30 am EET 1 (1)

If P&C Insurance outsources its server operations and end user services to TietoEnator. The contract is an expansion of the existing partnership covering Finland and comprises all Nordic countries as well as If's offices outside the Nordic area, excluding the Baltic countries The total order value is over 100 million euros. This agreement with a major Northern European insurance company will strengthen TietoEnator's partnership operation within the insurance industry as well as the position of the Processing & Network business area as one of the leading outsourcing service providers in the Nordic countries.

TietoEnator will physically centralise If's production centres mainly at its global production centre in Helsinki. This will mean cost benefits for the customer as well as high quality service in all the countries If operates in. The transition project starts in April 2005 and will be finalised by January 2006.

The server operations include centralised production capacity and server management for If's more than 700 servers and OS390 mainframe usage. The agreement concerning these has been made for five years with option to extend it by two years. Th end user services cover a service desk and support services for 8.000 workstations. This agreement is for two years with an option to extend it by three years. The new contracts will start to have an effect on TietoEnator's net sales in the fourth quarter of 2005 and the contract value for 2006 is expected to be around EUR 13 million higher than the current level of the agreement with If in Finland. The effect on TietoEnator's profit is expected to be positive from the beginning of 2006.

"The new common Nordic agreements with different IT companies will give us a higher quality in the IT operation since we will be working with more specialised suppliers. The deals also mean significant cost savings compared to today," says Kjell Rune Tveita, IT manager at If. Besides server operations and end user services If outsources also its communication and graphical services.

"With this important new agreement TietoEnator will extend its current partnership with If to cover the whole of Scandinavia. The new service supply will be based on TietoEnator's new centralised service concept and will also include new digital workplace services," says Sakari Lehtola, Executive Vice President at TietoEnator Processing & Network.

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