Renewing Strategic IT Service Agreements for Optimized IT Operations

Background & Challenge

Valmet, a global leader in process technologies, automation, and services for the pulp, paper, and energy industries, has partnered with Melkki (part of Midagon) to drive significant strategic RFP processes over a two-year period.

Valmet's substantial growth through acquisitions had led to a complex array of IT agreements. With several major outsourcing contracts nearing completion in 2023, Valmet faced the dual challenge of reducing costs and enhancing service quality. Recognizing the need for expert guidance, Valmet engaged Melkki as a sourcing partner to collaborate with its IT department and achieve the desired outcomes.

Our Approach

Our strategy involved a hands-on collaboration with Valmet to identify service pain points, improvement areas and also successful practices. We established sourcing objectives based on these insights and target cost levels, ensuring clear communication with suppliers through workshops. The Melkki team maintained close coordination with Valmet's IT leadership and sourcing teams, guaranteeing alignment with client expectations and informed decision-making based on factual analyses.

Post-contract, the Melkki team played a pivotal role supporting Valmet domain responsibles in the transition and transformation management, ensuring a seamless changeover and the realization of qualitative improvements.

Impact & Value Delivered

Valmet has successfully transitioned to new contracts and, in some instances, new partners across all major outsourcing service areas. The strategic partnerships have not only met the cost targets but have also launched improvement programs that have already yielded improvements in service quality. These enhancements reflect Valmet's commitment to operational excellence and customer satisfaction.

“Melkki has successfully helped us in the sourcing process and agreement renewals with our strategic IT partners. With Melkki as our advisor, we have reached an optimal balance between quality and cost for the services, resulting in an improved operating model” says Janne Puustinen, Valmet CIO.

“The Valmet commitment and trust in Melkki and our people has been the cornerstone for the positive results we have achieved together. We look forward to continue working together” says Patrik Felixson, Partner at Melkki.