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The Swedish insurance company Folksam is outsourcing the application management of all its central business systems to Tieto. The agreement gives Folksam the opportunity to meet future needs for IT solutions that support the business development of the company. It will run for four years, with the option of a two-year extension. The total order value during the four-year period is estimated to approximately 39 MEUR. The transaction also involves 25 employees being offered employment at Tieto.
“By outsourcing the management of our IT operations, we’re making Folksam more cutting-edge for the future, allowing us to concentrate our resources on what we’re best at, which is our own business,” says Gunnar Fröderberg, CIO at Folksam.
Tieto’s capacity services form a significant part of the overall upgrade of Folksam’s IT infrastructure. Among other things, the insurance company will be able to benefit from the certified cloud service, iTAP. The agreement gives flexibility of costs while providing access to new technology when Tieto takes over responsibility for developing infrastructure and application platforms further.
“We’re delighted to have been entrusted with the application management of Folksam’s central business systems. This is further proof that the market sees great value in the industry know-how and customer focus that Tieto offers. Combined with our long experience of outsourcing, it means that we are seen as a very attractive partner to banks and insurance companies,” says Alexandra Fürst, Head of Financial Services, Sweden.