CGI (GIB) announced that Finnish insurance company LähiTapiola Group has extended its information technology and communications (ICT) outsourcing agreement with LTC-Otso Oy joint venture of CGI and LähiTapiola Group.

LTC-Otso delivers a full range of ICT outsourcing services to LähiTapiola Group, leveraging CGI’s ISO-certified service models and global resources. The new agreement is valid until the end of 2021, with a total value of approximately 180 million euros.

CGI and LähiTapiola Group established LTC-Otso as a joint venture in 2013 to deliver ICT services to the banking and insurance business of LähiTapiola Group and its subsidiaries. LähiTapiola Group is one of the largest insurance companies in Finland

"Continued investment in this partnership is well worth the returns," said CEO Harri Lauslahti of LähiTapiola Palvelut Ltd. "LTC-Otso has demonstrated its ability to deliver the services we require cost efficiently and with a high standard of quality."

Managing Director of Tieto-Tapiola Janne Kärkkäinen, who was responsible for contract negotiations on behalf of LähiTapiola Group, noted, "ICT outsourcing has turned out to be so profitable that we wanted to extend our partnership before the existing contract period expired."

"This extension demonstrates that our partnership has been productive and has generated sustainable value," said LTC-Otso’s Managing Director Jukka Tarkiainen. "With extensive outsourcing arrangements of this type, our recipe for success is combining a strong local presence with global resources and proven operating models."

Extension of the LähiTapiola Group ICT outsourcing agreement is conditional upon the end of the appeal period of the Finnish Tax Administration (last week of July).

Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world.

LTC-Otso is a joint venture of CGI and LähiTapiola Group, specializing in IT solutions for the insurance and banking sectors.
The 300 IT experts employed by LTC-Otso provide extensive business and solution consulting services, as well as product and integration solutions.

Specifically, the company delivers insurance, financial management, banking, payment transaction and invoicing services, and also specializes in supporting the needs of online business, financial and HR administration.

LähiTapiola is a mutual group owned by its customers. LähiTapiola’s network comprises 20 regional mutual insurance companies and LähiTapiola Vahinkovakuutusyhtiö, responsible for statutory and corporate insurance.