Tietoevry's Leadership Shift: A New Era Begins
April 29, 2025, 6:26 pm
In the world of business, change is the only constant. Tietoevry Corporation, a leading software and digital engineering company, is experiencing a significant transition. Kimmo Alkio, the long-serving CEO, is stepping down after 14 years at the helm. His departure marks the end of an era and the dawn of a new chapter for the company. Endre Rangnes has been appointed as the interim CEO, effective May 5, 2025. This leadership change comes at a pivotal moment as Tietoevry navigates a challenging economic landscape and embarks on a strategic renewal.
Alkio's tenure has been characterized by growth and transformation. Under his leadership, Tietoevry evolved into a world-class technology company. He spearheaded initiatives that positioned the firm as a key player in the software and digital engineering sectors. His decision to step down is not just a personal milestone; it reflects the company's readiness to embrace a new direction. The recent divestment of Tietoevry Tech Services is a crucial part of this strategic repositioning. It signals a shift towards a more focused approach, concentrating on software solutions and digital engineering.
Endre Rangnes, the new interim CEO, is no stranger to the company. He currently serves as the Managing Director of Tietoevry Banking and brings over two decades of leadership experience in technology and financial services. His appointment comes with high expectations. Rangnes aims to reinforce Tietoevry's market orientation and enhance its software offerings. He recognizes the urgency of delivering measurable value to clients, especially in a time of economic uncertainty.
The recent interim report for Q1 2025 paints a mixed picture. Tietoevry reported an organic growth decline of 4%, attributed to a weak demand environment. Adjusted EBITA stood at 10.6%, impacted by temporary costs related to the divestment. However, the company also reported strong cash flow and a strengthened order backlog, particularly in its Banking and Care sectors. This duality reflects the complexities of the current market landscape.
The divestment of Tech Services is a significant milestone. It allows Tietoevry to streamline its operations and focus on its core competencies. By shedding non-core assets, the company can allocate resources more effectively. This strategic move is not just about cutting costs; it’s about positioning Tietoevry for sustainable growth. The decision aligns with Rangnes's vision of simplifying operations and enhancing performance.
The financial outlook for Tietoevry has been updated to reflect these changes. The company anticipates organic growth between -2% and +1% for the year. Adjusted operating margins are expected to remain stable, reflecting the ongoing efforts to optimize performance. This cautious optimism is essential in a landscape marked by economic and geopolitical challenges.
Rangnes's commitment to innovation is clear. He emphasizes the importance of leveraging technology to drive growth. Tietoevry is focusing on cloud, data, and AI technologies to enhance its product offerings. The introduction of Lifecare AI Search for Care Measures is a testament to this commitment. This innovative solution allows care professionals to access relevant information quickly, showcasing Tietoevry's capability to blend technology with real-world applications.
The company's specialized divisions—Tietoevry Create, Banking, Care, and Industry—are poised for future growth. Each segment is focused on innovation and addressing the unique needs of its clients. The recognition of Tietoevry Banking in the 2025 WealthTech100 list underscores the company’s competitive edge in the financial technology space.
However, the road ahead is not without challenges. The ongoing conflict in Ukraine poses significant risks. Tietoevry remains committed to supporting its local colleagues during this difficult time. The resilience of its workforce is commendable, and the company’s focus on ethical conduct and social impact is more important than ever.
Sustainability is also a core focus for Tietoevry. The company recently published its first Sustainability Statement, aligning with CSRD requirements. This commitment to sustainability is integral to Tietoevry's strategy, emphasizing climate action, ethical conduct, and social impact. The goal is to foster a culture of diversity, equity, and inclusion, ensuring that technology serves humanity.
As Tietoevry transitions into this new era, the leadership change symbolizes more than just a shift in personnel. It represents a broader commitment to innovation, efficiency, and sustainability. The company is poised to redefine its identity in the software and digital engineering landscape. With Rangnes at the helm, Tietoevry is ready to navigate the complexities of the market and emerge stronger.
In conclusion, Tietoevry stands at a crossroads. The departure of Kimmo Alkio marks the end of a significant chapter, while Endre Rangnes's interim leadership signals a fresh start. The company’s strategic focus on software and digital engineering, coupled with a commitment to innovation and sustainability, positions it well for the future. As Tietoevry embarks on this journey, it remains to be seen how these changes will shape its trajectory in the ever-evolving tech landscape. The future is uncertain, but with a clear vision and dedicated leadership, Tietoevry is ready to embrace the challenges ahead.
Alkio's tenure has been characterized by growth and transformation. Under his leadership, Tietoevry evolved into a world-class technology company. He spearheaded initiatives that positioned the firm as a key player in the software and digital engineering sectors. His decision to step down is not just a personal milestone; it reflects the company's readiness to embrace a new direction. The recent divestment of Tietoevry Tech Services is a crucial part of this strategic repositioning. It signals a shift towards a more focused approach, concentrating on software solutions and digital engineering.
Endre Rangnes, the new interim CEO, is no stranger to the company. He currently serves as the Managing Director of Tietoevry Banking and brings over two decades of leadership experience in technology and financial services. His appointment comes with high expectations. Rangnes aims to reinforce Tietoevry's market orientation and enhance its software offerings. He recognizes the urgency of delivering measurable value to clients, especially in a time of economic uncertainty.
The recent interim report for Q1 2025 paints a mixed picture. Tietoevry reported an organic growth decline of 4%, attributed to a weak demand environment. Adjusted EBITA stood at 10.6%, impacted by temporary costs related to the divestment. However, the company also reported strong cash flow and a strengthened order backlog, particularly in its Banking and Care sectors. This duality reflects the complexities of the current market landscape.
The divestment of Tech Services is a significant milestone. It allows Tietoevry to streamline its operations and focus on its core competencies. By shedding non-core assets, the company can allocate resources more effectively. This strategic move is not just about cutting costs; it’s about positioning Tietoevry for sustainable growth. The decision aligns with Rangnes's vision of simplifying operations and enhancing performance.
The financial outlook for Tietoevry has been updated to reflect these changes. The company anticipates organic growth between -2% and +1% for the year. Adjusted operating margins are expected to remain stable, reflecting the ongoing efforts to optimize performance. This cautious optimism is essential in a landscape marked by economic and geopolitical challenges.
Rangnes's commitment to innovation is clear. He emphasizes the importance of leveraging technology to drive growth. Tietoevry is focusing on cloud, data, and AI technologies to enhance its product offerings. The introduction of Lifecare AI Search for Care Measures is a testament to this commitment. This innovative solution allows care professionals to access relevant information quickly, showcasing Tietoevry's capability to blend technology with real-world applications.
The company's specialized divisions—Tietoevry Create, Banking, Care, and Industry—are poised for future growth. Each segment is focused on innovation and addressing the unique needs of its clients. The recognition of Tietoevry Banking in the 2025 WealthTech100 list underscores the company’s competitive edge in the financial technology space.
However, the road ahead is not without challenges. The ongoing conflict in Ukraine poses significant risks. Tietoevry remains committed to supporting its local colleagues during this difficult time. The resilience of its workforce is commendable, and the company’s focus on ethical conduct and social impact is more important than ever.
Sustainability is also a core focus for Tietoevry. The company recently published its first Sustainability Statement, aligning with CSRD requirements. This commitment to sustainability is integral to Tietoevry's strategy, emphasizing climate action, ethical conduct, and social impact. The goal is to foster a culture of diversity, equity, and inclusion, ensuring that technology serves humanity.
As Tietoevry transitions into this new era, the leadership change symbolizes more than just a shift in personnel. It represents a broader commitment to innovation, efficiency, and sustainability. The company is poised to redefine its identity in the software and digital engineering landscape. With Rangnes at the helm, Tietoevry is ready to navigate the complexities of the market and emerge stronger.
In conclusion, Tietoevry stands at a crossroads. The departure of Kimmo Alkio marks the end of a significant chapter, while Endre Rangnes's interim leadership signals a fresh start. The company’s strategic focus on software and digital engineering, coupled with a commitment to innovation and sustainability, positions it well for the future. As Tietoevry embarks on this journey, it remains to be seen how these changes will shape its trajectory in the ever-evolving tech landscape. The future is uncertain, but with a clear vision and dedicated leadership, Tietoevry is ready to embrace the challenges ahead.