Finland-based financial services organisation Sampo Group has entered a long-term cooperation agreement with TietoEnator to outsource its insurance IT services to Tietoleonia, a joint venture company owned by the two groups.
Under the terms of the arrangement Tietoleonia will recruit 330 IT employees from Sampo, increasing the joint venture company's personnel to 620.
Tietoleonia has previously been responsible for the IT functions of the Sampo Bank Group. TietoEnator currently holds 60% of the shares and 40% of the votes in Tietoleonia, whereas Sampo holds 40% of the shares and 60% of the votes.
Tietoleonia, which is likely to be renamed, will be reorganised around two units: system services and production and support services. It is planned to incorporate these units as joint stock companies at a later date.
The joint venture's turnover during its first year of operation is estimated to total approximately EUR110 million.