Investments and development

Tieto is seeking to grow faster than the market in the long term. Tieto will accelerate its high-growth businesses through investments in offering development and new competencies as well as acquisitions. In the full year, the number of full-time employees rose by a net amount of around 800. Additionally, the company will continue to invest in standardization and automation to drive improvements in productivity and quality.

Full-year capital expenditure totalled EUR 61.6 (50.5) million, of which paid EUR 61.7 (43.7) million. Capital expenditure represented 4.1% (3.5) of net sales and was mainly related to data centres. Net payments for acquisitions totalled EUR 32.3 (73.7) million.

Capital expenditure also included EUR 9.6 million in Tieto’s head office. Costs related to premises, however, are expected to decline due to improved premise efficiency. The rental agreement for one large office in the capital area ended on 31 December 2016.

Tieto’s offering development costs amounted to around EUR 75 million in 2016, representing 5.0% of Group sales (EUR 60 million in 2015, representing 4.1% of net sales). These costs comprise service and product development focusing on, for example, industry solutions, Customer Experience Management and Security Services, as well as cloud services. Additionally, the costs for related internal development, e.g. automation in infrastructure services, are included in this amount. No development costs were capitalized for either 2016 or 2015.