CGI today announced that Finnish insurance company LähiTapiola Group has extended its information technology and communications (ICT) outsourcing agreement with LTC-Otso Oy joint venture of CGI and LähiTapiola Group. LTC-Otso delivers a full range of ICT outsourcing services to LähiTapiola Group, leveraging CGI’s ISO-certified service models and global resources. The new agreement is valid until the end of 2021, with a total value of approximately 180 million euros.
CGI and LähiTapiola Group established LTC-Otso as a joint venture in 2013 to deliver ICT services to the banking and insurance business of LähiTapiola Group and its subsidiaries. LähiTapiola Group is one of the largest insurance companies in Finland.
“Continued investment in this partnership is well worth the returns,” said CEO Harri Lauslahti of LähiTapiola Palvelut Ltd. “LTC-Otso has demonstrated its ability to deliver the services we require cost efficiently and with a high standard of quality.”
Managing Director of Tieto-Tapiola Janne Kärkkäinen, who was responsible for contract negotiations on behalf of LähiTapiola Group, noted, “ICT outsourcing has turned out to be so profitable that we wanted to extend our partnership before the existing contract period expired.”
“This extension demonstrates that our partnership has been productive and has generated sustainable value,” said LTC-Otso’s Managing Director Jukka Tarkiainen. “With extensive outsourcing arrangements of this type, our recipe for success is combining a strong local presence with global resources and proven operating models.”
“LTC-Otso is an excellent demonstration of how CGI’s service models work in Finland,” said Heikki Nikku, President of CGI’s Nordic operations. “Our core business is ICT development and modernization to help companies reap the full benefits of ICT, such as the potential of digitalization. This work, in turn, allows clients to focus on the development of their own core business and services.”
Extension of the LähiTapiola Group ICT outsourcing agreement is conditional upon the end of the appeal period of the Finnish Tax Administration (last week of July).
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