The Finland-based technology company, Valmet, shifts its business focus to online development and business expansion by outsourcing its IT supply operations. Together with the technology outsourcing company, CGI (Canadian Global Information), Velmet is now embarking on a €38 million outsourcing deal that will cover its operations in at least 30 countries.
IT Vice President of Valmet, Janne Puustinen stated that outsourcing non-core operations of their business is their key strategy to minimise costs while improving efficiency in their operations, and simplifying supplier management system. Moreover, it will let their internal resources focus more on developing digital capabilities for the company’s growth and future endeavours. Valmet realized that they were acquiring services from different suppliers and it only took much of their time just by dealing with these suppliers. Thus, through outsourcing with CGI, the deal would help them optimise existing services to creating new ones.
“Currently, our IT is roughly divided into infrastructure and business application services, which are both centrally produced for our business. [This agreement] covers our infrastructure and user services.”
Under the outsourcing contract, 58 of 200 ICT professionals from Valmet will be offered to transfer to CGI under their current employment terms. Furthermore, the transferred employees will acquire CGI’s internal career paths and other benefits. On the other hand, the Candian firm will provide Valmet a hybrid cloud-based IT infrastructure services, service automation-based digital end-user services, and workstation management services. The change will reflect on Valmet employees in 14 countries, which currently employs 12,000 staff worldwide.
Puustinen told in an interview that most of its services were already outsourced since 2016, just when they were trying to analyse business strategies for their IT operations. Part of the process is identifying what the company should focus into, and they also looked closely to outsourcing strategies. Five companies were then invited to offer their services to Valmet until an agreement with CGI was settled over the summer of 2017. The vice president further explained that with CGI, their IT infrastructure and tools will be modernised as they are being supported by experts in this field. Puustinen further elaborated that:
“With these actions, we will improve the performance and efficiency of our internal IT operations. Our IT resources will be able to increase focus on building the competences and ways to operate necessary for Valmet’s future development. Transferring the IT infrastructure services, including service desk, after a thorough evaluation process to CGI is one of the key steps to enable this transformation.”
CGI has previously worked with Valmet by providing the Finnish company cybersecurity services. It has supported them in monitoring information security, managing risk situation and developing general security level. In the years to come, CGI will provide more of its services like Unify360 service concept—an advanced system for the development of IT firms.
Meanwhile, Senior Vice President of CGI Finland Tapio Volanen warmly welcomes Valmet employees on board:
”CGI’s strategy is based on being close to our customers and on our solid industry expertise. We therefore warmly welcome the employees transferring from Valmet to CGI, whether they are working in Finland or in other Valmet sites. CGI fosters an entrepreneurial and participatory corporate culture. For this reason, all employees have the right to participate in the share purchase plan. As part of the plan, CGI doubles every euro that the employee invests in CGI’s shares.”