Tapiola Data, a subsidiary of Finnish insurance company LähiTapiola Group, and CGI’s Logica Suomi have agreed to set up a new information and communication technology (ITC) company, known as LTC-Otso.

Expected to earn €150m revenues over the next five years, the proposed start up will deliver ITC services to support the banking and insurance business of LahiTapiola and its subsidiaries.

Jukka Tarkiainen has been appointed to serve as managing director of the new company.

Around 240 employees of Tapiola Data and nearly 40 people from Logica will join LTC-Otso, which is likely to start functioning from 1 February 2013.

LähiTapiola CIO Esa Viitamäki said, "We are confident that the new company meets the current market need for high quality technology services required by and designed specifically for the banking and insurance sector."

The new services, which includes development, consulting and application management services of information systems, will be focused on dealing with the needs of property, casualty, life and pension insurance business, banking, asset management, and real estate investment.

LocalTapiola caters insurance, banking and investment services for private, entrepreneur, corporate and institutional customers.