How Does TietoEVRY Company Work?

How is TietoEVRY transforming its business?

TietoEVRY is strategically repositioning itself as a prominent player in the software and digital engineering sector. This transformation includes the divestment of its Tech Services business, expected to finalize in Q3 2025.

This move sharpens the company's focus on its core software businesses and digital engineering expertise, signaling a new direction. With around 16,000 global experts, TietoEVRY serves clients in approximately 90 countries.

How does TietoEVRY work?

TietoEVRY operates through specialized business units focused on vertical software, design, cloud, and AI. The company's annual revenue for continuing businesses is approximately EUR 2 billion, following a restatement of its 2024 financials. This strategic shift aims to bolster its presence in high-growth areas like cloud-native services and data and software engineering, as detailed in analyses like the TietoEVRY BCG Matrix.

The TietoEVRY company operations are structured around specialized end-to-end businesses, focusing on delivering value through software and digital engineering. This model allows for deep expertise within specific sectors, driving innovation and tailored solutions for a diverse client base.

Tietoevry Care

This division offers health and social care software, modernizing the Nordic sector with its Lifecare solution. It emphasizes a data-driven approach for improved care experiences.

Tietoevry Banking

It provides financial Software-as-a-Service, modernizing banks with solutions for cards, transactions, and financial crime prevention. A modular Banking-as-a-Platform is also a key offering.

Tietoevry Industry

This segment delivers modern software products, utilizing deep industrial knowledge for specialized markets. It focuses on customer-centric and data-driven solutions.

Tietoevry Create

Specializing in design, data, and digital engineering, this unit builds custom digital solutions. Its aim is to maximize value for clients across various global industries.

Each of these specialized businesses operates with full autonomy, managing their go-to-market strategies, service portfolios, delivery capabilities, and investment decisions. This structure supports TietoEVRY's commitment to ethical technology, with 97% of its 23,000 employees completing mandatory Responsible AI e-learning in 2024. The company also demonstrates a strong focus on sustainability, having achieved an 87% reduction in greenhouse gas emissions (scope 1 and 2) by 2024, with a target of 90% by 2026. This operational framework, emphasizing cloud-native services and data engineering, underpins how TietoEVRY works to deliver tangible customer benefits and achieve market differentiation. Understanding the Growth Strategy of TietoEVRY provides further insight into its market positioning.

Key Operational Pillars

TietoEVRY's business model is built on specialized software and digital engineering services. This approach allows for deep industry focus and tailored solutions.

• Modular and open software solutions
• Low-risk SaaS implementations
• Data-driven and customer-centric approaches
• Global digital engineering capabilities

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TietoEVRY's revenue generation is primarily driven by its specialized software businesses and digital engineering services. The company's TietoEVRY company operations are structured around key segments that cater to specific industry needs. Understanding how TietoEVRY works involves looking at these distinct revenue-generating units.

Specialized Software Businesses

The core of TietoEVRY's revenue comes from its specialized software segments: Tietoevry Care, Tietoevry Banking, and Tietoevry Industry. These units provide mission-critical solutions tailored to their respective sectors.

Digital Engineering Services

Tietoevry Create, the digital engineering arm, contributes significantly by offering services that support clients' digital transformation journeys. This segment focuses on innovation and custom solutions.

Revenue Performance in 2024-2025

For the full year 2024, the company reported restated revenue of EUR 1,879.5 million from continuing businesses. In Q1 2025, continuing operations generated EUR 470.8 million, reflecting a 4% organic decline.

Segment-Specific Growth Trends

While Tietoevry Care showed a 1% organic revenue increase in Q2 2024, other segments experienced declines. In Q1 2025, Tietoevry Create saw a 6% organic decline, Tietoevry Banking a 4% decline, and Tietoevry Industry a 2% decline.

Monetization Strategies

Monetization relies on a mix of product sales, software-as-a-service subscriptions, and service fees for digital engineering and managed services. The TietoEVRY business model emphasizes recurring revenue streams.

Strategic Focus and Future Outlook

The company's strategic direction includes a focus on cloud-native services and scalable platforms. Despite recent market challenges, the order backlog showed a 14% year-over-year organic increase in Q2 2025.

TietoEVRY's approach to revenue generation is multifaceted, aiming for sustainable growth through its diverse portfolio of TietoEVRY IT services and solutions. The company is actively pursuing cost optimization programs, targeting EUR 115 million in run-rate savings by the end of 2026 to bolster profitability. This strategic financial management, coupled with a strong order backlog, positions the company to navigate market fluctuations and capitalize on future opportunities. Understanding the Brief History of TietoEVRY can provide further context on its evolution and strategic shifts.

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Key milestones and strategic moves are shaping the TietoEVRY company operations, focusing on its evolution as a specialized software and digital engineering entity. These shifts are designed to enhance its competitive edge in the dynamic IT services landscape.

Strategic Divestment for Focus

A significant milestone for TietoEVRY in 2025 is the divestment of its Tech Services business, announced in March 2025. This move is intended to accelerate the company's transformation into a focused software and digital engineering firm.

Navigating Market Challenges

Despite soft market conditions leading to organic revenue declines in Q4 2024 (-7%) and Q1 2025 (-4%), TietoEVRY has maintained a solid adjusted operating margin of 12.8% in Q4 2024.

Efficiency and Cost Optimization

In response to market headwinds, the company initiated efficiency measures, including employee reductions in 2024. A new cost optimization program launched in 2025 targets EUR 115 million in run-rate savings by the end of 2026.

Competitive Strengths

TietoEVRY's competitive edge lies in its specialized end-to-end businesses, deep industry knowledge, and strong customer relationships, particularly in cloud, data, and AI.

Driving Innovation and Sustainability

The company's commitment to responsible AI and sustainability, evidenced by an 87% reduction in greenhouse gas emissions in 2024, enhances its market appeal. Recognition in the 2025 WealthTech100 list for Tietoevry Banking further underscores its technological leadership.

• Focus on specialized end-to-end businesses
• Deep industry knowledge and strong customer relationships
• Expertise in cloud, data, and AI, with a focus on responsible AI
• Commitment to sustainability, achieving an 87% reduction in greenhouse gas emissions in 2024
• Expansion of European market presence, exemplified by projects in Switzerland and Norway

Understanding TietoEVRY's approach to cloud services and its strategy for customer engagement are crucial to grasping how TietoEVRY works. The company's dedication to adapting to new trends, such as expanding its European market presence, is a key aspect of its ongoing development. This strategic direction aligns with the broader Marketing Strategy of TietoEVRY, aiming to solidify its position in the global IT market.

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TietoEVRY is a prominent software and digital engineering firm with a strong Nordic foundation and worldwide reach, serving numerous enterprise and public sector clients across approximately 90 countries. The company's specialized divisions, including Tietoevry Care, Tietoevry Banking, Tietoevry Industry, and Tietoevry Create, are strategically positioned to excel within their respective sectors. TietoEVRY's leadership in hybrid cloud orchestration and sustainability has been acknowledged by ISG Provider Lens, and it has been recognized as a European Climate Leader for 2025 by the Financial Times and Statista, as well as one of the World's Greenest Companies 2025 by Newsweek.

Industry Position

TietoEVRY is a leading software and digital engineering company with a significant presence in the Nordic region and a global operational footprint. It serves a broad customer base across various sectors, demonstrating its extensive market reach and diverse service offerings.

Key Risks and Headwinds

The company faces market-related challenges, including soft market conditions that have impacted organic revenue in late 2024 and early 2025. Cost management and profitability are also key concerns, exacerbated by specific financial events like the IFRS 5 impact from a divestment and an impairment charge on a legacy platform.

Future Outlook and Strategy

TietoEVRY's strategic direction is centered on its evolution into a premier software and digital engineering entity. The company anticipates modest organic growth for 2025 and aims for an adjusted operating margin between 12.0% and 13.0%.

Strategic Initiatives

Key initiatives include enhancing customer-focused sales, shifting expertise towards emerging technologies like cloud, data, and AI, and implementing cost optimization measures to achieve substantial run-rate savings. Expansion beyond the Nordics for specific business areas is also a strategic focus.

TietoEVRY's Financial Projections and Strategic Focus

For 2025, TietoEVRY projects organic growth between -2% and +1%, building on a restated 2024 revenue of EUR 1,879.5 million. The company targets an adjusted operating margin of 12.0% to 13.0% for the full year. This outlook is supported by strategic efforts to bolster sales capabilities, advance technological competencies in cloud, data, and AI, and execute cost-saving programs expected to yield EUR 115 million in run-rate savings by the end of 2026.

• Strengthening customer-focused sales capabilities.
• Shifting competence towards cloud, data, and AI.
• Implementing cost optimization programs for EUR 115 million in savings by end of 2026.
• Expanding Tietoevry Care and Tietoevry Banking beyond the Nordics.
• Presenting further strategic priorities at Capital Markets Day in November 2025.

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