Solteq is a Nordic provider of IT services and software solutions specializing in the digitalization of business and industry-specific software. The key sectors in which the company has long-term experience include retail, industry, energy and services. In addition to Finland, the company operates in Sweden, Norway, Denmark, Poland and the UK.
We offer comprehensive services, which cover all aspects of our customers' operations from digital business development and service design to implementation and maintenance. A large portion of our revenue streams come from continuous services. SaaS and cloud services are crucial forms of our operations.
Our service offering is characterised by the combination of extensive experience and deep customer and industry insight. We want to make everyday digital services as easy and convenient to use as possible.
We strengthen our customers’ competitive edge and decision-making through extensive analysis and utilisation of real-time data. The acquisitions have also expanded our operating environment and made us a truly Nordic player.
Solteq aims to meet the changing needs of industries, such as the Nordic utilities, retail, and service sectors, through its product development and expert services. The selected industries need smarter and more efficient core functions due to the ongoing rapid digital disruption. Particularly, the retail and utilities sectors have increased in importance for Solteq’s business. These industry-specific software solutions and expert services account for over three quarters of the group-level revenue.
Solteq has two business segments: Solteq Software, which focuses on product development and software solutions, and Solteq Digital, which provides IT expert services. The company’s software products and expert services comprehensively cover the trends which, according to recent studies, will be the key IT investment areas for Nordic decision-makers in the coming years.
The utilities sector is one of the key drivers of growth for Solteq in the Nordic market. Demand for industry-specific software solutions is accelerated by consumers’ increased interest in the origin and the production of energy, societal changes in the industry’s regulation, and the potential of more streamlined business operations created by the developing technology.
The Utilities business consists of software solutions and expert services. The offering comprehensively takes into account the Nordic and EU level regulatory changes in the utilities sector. Among these are nationally driven datahub projects for centralized information exchange and the unification of operating models regarding measurement practices and the opening of electricity markets. The company estimates that its long-term industry expertise, along with its industry-specific offering, meets the requirements of the changing operating environment and creates a clear competitive advantage in the Nordic market.
The research and advisory company Gartner forecasts that during 2022, the Nordic utilities sector will invest over EUR 1.3 billion in software solutions and approximately EUR 2.2 billion in IT expert services. According to Gartner, investments in digitalization in the sector will continue to grow in the Nordic countries, reaching nearly EUR 2.3 billion in software solutions and approximately EUR 3.2 billion in IT expert services by 2025.
The compatibility and efficiency of IT architecture are challenged by increasingly multidimensional customer journeys, the increased number of online transactions accelerated by the COVID-19 pandemic, and the multiple information systems linked to the various stages of trading. The retail and service sectors are being transformed, and not only by rapid digital disruption but also by changing consumer behavior and needs. Customers in digital channels already have high expectations in terms of fluency, personalized service, and the user experience. According to Gartner, in 2021 the greatest additional investments in the retail sector will focus on business intelligence and analytics and the development of online stores.
As a result of long-term product development, Solteq offers cloud-based point-of-sale solutions to meet the needs of the retail and service sectors. These solutions simplify business processes and data management while creating a coherent and integrated IT architecture. Solteq’s expert services focusing on ecommerce, data, and analytics meet well with the development needs related to the digital customer experience.
Gartner estimates that during 2022, the Nordic retail and service sectors will invest over EUR 550 million in software solutions, and approximately EUR 1.9 billion in IT expert services. As the digital disruption continues to advance and consumer behavior continues to evolve, investment needs in the Nordic countries will increase by 2025 to about EUR 800 million in software solutions, and to around EUR 2.9 billion in IT expert services.
The Russian invasion of Ukraine, which begun in February, has had no immediate impact in the Company's business. In the long run, the war may affect demand for IT solutions and expert services provided by the Company due to the weakened economy and customers’ decreased ability to make investments. In addition, the changed cyber security environment increases the risk for denial-of service attacks, which could affect the reliability of cloud services. Solteq has put long-term effort in the prevention of information security threats to its own operations.
The IT sector worldwide is severely affected by a labor shortage, with millions of vacancies at risk of being left unfilled due to a lack of qualified candidates. In the IT sector, the demand for experts is particularly high in areas including cloud technology, artificial intelligence, data, system development and architecture, and automation. The labor shortage is expected to significantly hamper the realization of the sector’s full growth potential. Solteq is striving to minimize the business impact of these difficult conditions by investing resources in recruitment, employer branding, and the employee experience.
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