Tieto in Russia. Capital Market Day 25 November 2010 Helsinki, Finland. Tuomo Summanen Country Manager, Tieto Russia Tieto Corporation

Transcription

1 Tieto in Russia Capital Market Day 25 November 2010 Helsinki, Finland Tuomo Summanen Country Manager, Tieto Russia

2 Content Economic trends Russian IT services market Tieto s current business in Russia Growth strategy

3 Economic trends Russian GDP declined 8% in 2009 due to Decline in prices of oil and other raw materials Scarcity of financing Widespread uncertainty Economic growth forecasted for Forecasted annual GDP growth % Unsuccessful business diversification during the past 10 years High economic growth was built on spare capacity and underemployed labor force Oil price is an important determinant of Russian economic growth Several problems remain: resource dependence, weak institutions, inflation, inequality Declining population Forecast for population decline by 2030: 2.5 million (Rosstat), 14 million (UN) Modernization and productivity increase # one task 3

4 Russian IT services market Market is still quite immature share of IT services below 20% of overall IT spending High volatility (50% drop in 2009) largely due to low share of stable continuous services Expected CAGR for IT services 17% in % CAGR for continuous services Government, financial services, energy, and telecommunications are the largest sectors IT services market size (B EUR) 100 Consulting 8 Sweden 80 Application development Denmark Norway Russia Finland Poland Systems integration Product support Applications management FIN SWE NO DK Poland Russia Infrastructure management

5 Is Russian IT services market different? Forrester, August 2010: Four factors will dramatically change the dynamics, economics, and competitive landscape of IT services over the next 3 4 years. Restructuring economy IT investments cost efficiency driven 20 30% cost cutting agenda Outsourcing has started Buying and governance Predefined delivery with fixed price Sales negotiations very price oriented Contacts often more important than offering Innovations Crisis speeds up hard choices: which services, processes, technologies and competences improve productivity in future As-a-service becomes the norm From buying hardware & licenses to buying services & solutions = more direct business value Slow progress in Russia 5

6 Tieto in Russia Operations for 20 years, first office employees (incl. Belarus delivery centre) 400 full time employees through subcontractors 30+ Russian and international customers Offices in Moscow and in St. Petersburg Data centres in Moscow and St. Petersburg Russia is a strategic growth market for Tieto Strong organic growth Focus on outsourcing to speed growth New data centre in Moscow Core infrastructure and cloud services available Key industry offerings localized 6

7 Offering and customers Horizontal and industry solutions to drive growth and cost-efficiency Energy efficiency solutions Unified communications Business intelligence Online commerce and multichannel customer interaction Digital Front Office Financial messaging Oil upstream modernization and transparency ehealthcare Customers in the selected areas: Russian: Severstal, Peterstar, Delovoi Peterburg, Megafon, Lenta, Svyazinvest, Russian Standard Bank, Lukoil Overseas Other: Fortum, Kesko, If, Mondi, International paper Customer case: Severstal Infocom Application management services Oracle EBS ERP system is provided for the Dearborn steel mill of Severstal North America. In addition to service desk and expert support, Tieto provides services for the further development of Severstal s EBS based solution Outsourcing Infrastructure optimization, continuous services, cloud services 7

8 Focused approach for growth Infrastructure optimization and modernization Business - Infrastructure critical optimization application and modernization Companies in Russia are resuming strategic IT investments with a focus on: - Business critical applications Tieto a trusted partner in continuous services and global industry expertise Modern data centre services Deep industry knowledge Outsourcing incl. joint venture experience R&D powerhouse 8

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