The agreement is an expansion of the existing partnership covering Finland and comprising all Nordic countries as well as If’s offices outside the Nordic area, excluding the Baltic countries.
As part of the deal, TietoEnator will physically centralize If’s production centers mainly at its global production centre in Helsinki with the aim of providing cost benefits for the customer and high quality service.
The transition project starts in April 2005 and is expected to be finalized by January 2006.
The server operations include centralized production capacity and server management for If’s servers and OS390 mainframe usage, to take place over five years with the possibility of a two year extension.
The end user services cover a service desk and support services for the insurer’s workstations. This agreement is for two years with an option to extend it by three years.
TietoEnator believes the new contracts will start to have an effect on its net sales in the fourth quarter of 2005, and the contract value for 2006 is hoped to be around 13m euro 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 specialized suppliers. The deals also mean significant cost savings compared to today, says Kjell Rune Tveita, IT manager at If.
TietoEnator says the arrangement will strengthen its partnership operation within the insurance industry and the Processing & Network business area.
