Geopolitical changes and slow economic growth have challenged companies in recent years and led them to consider new ideas for business development and cost structure. As part of this trend, many companies have outsourced their functions or are considering outsourcing or changes to service providers. Outsourcing is often a practical method of business development that increases flexibility. However, the arrangement should be planned carefully in order to implement the outsourcing in a controlled manner, keeping any future changes in mind as well.
6.5.2024
Outsourcing company functions – four key points for success
Tomi Kemppainen, Kim Parviainen & Eija Warma-Lehtinen
Related services
When planning to outsource a function, the company should first take a look at its strategy: how will the outsourcing support the strategy as efficiently as possible? For example, if the company has prioritised digitalisation and artificial intelligence in its strategy, the outsourcing of ICT services should be implemented cautiously. Relevant aspects may include the service provider’s expertise, the extent and flexibility of services as well as service development opportunities.
Secondly, the possible effects of regulation should be taken into account at an early stage when outsourcing ICT services. International transfer of personal data, for example, involves certain restrictions, and EU regulation on cyber security and artificial intelligence may have to be taken into account in the service arrangement and related contracts.
The third matter before taking any concrete steps in the outsourcing plans is to identify which specific services are outsourced and what kind of practical implications the outsourcing could have for existing employees and their employment relationships. Does the outsourcing entail assignment of business or reductions in labour usage? This may significantly affect the outsourcing timeline and the company’s obligations under the Act on Co-operation within Undertakings. Furthermore, what are the implications of the outsourcing for customers or existing service providers?
The fourth key aspect to successful outsourcing is the contract, carefully prepared for its intended use, alongside a well-planned negotiation process. It is important to ensure that the contract secures the company’s rights as the purchaser of the service, sufficient flexibility and rights in any future changes. It is advisable to anticipate possible needs for changes in the future and use the contract to ensure that the service provider can be changed easily. Understanding the phases of the negotiation process and planning in advance have an important role in meeting these goals in a cost-efficient manner.
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Latest references
Merger of Oomi and Lumme Energia
We are acting as the joint legal advisor to Oomi Oy and Lumme Energia Oy in a transaction whereby Lumme Energia will merge with Oomi. As from the completion of the merger, the combined entity will be the largest electricity retail and service company in the Finnish market. In 2024, Oomi reported a turnover of EUR 373.9 million and had approximately 110 employees. Lumme Energia’s turnover for the same year was approximately EUR 314.6 million and it had approximately 50 employees. The transaction is primarily driven by the recent developments in the electricity market and the strategic goal to develop competitive products and services. Another key objective is to further enhance the customer experience, which is a shared value between the two companies. As a result of the merger, Lumme Energia’s customers will transfer to Oomi, and Lumme Energia will become one of Oomi’s shareholders. The completion of the transaction is subject to an approval by the Finnish Competition and Consumer Authority.
Case published 29.8.2025
HANZA – Acquisition of Milectria
We acted as Finnish legal advisor to HANZA AB in connection with its acquisition of the contract manufacturing division of Milectria, a group of companies specialising in electrical systems for the defence industry. The transaction comprises 100% of the shares in Milectria Oy (Finland), Milectria OÜ (Estonia), and the real estate company Kiinteistö Oy Kanungin Karhu. The transaction is expected to close in September 2025, subject to customary closing conditions, including regulatory approvals. Founded in 2008, HANZA is a Swedish mechanical engineering and electronics contract manufacturing company listed on the Nasdaq Stockholm main list. The company operating in seven countries currently has annual sales of approximately SEK 6 billion and approximately 3,100 employees. Milectria is a Finnish contract manufacturer of electrical systems for the defence industry.
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Case published 16.7.2025
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We advised Pihlajalinna Plc on an arrangement whereby Pihlajalinna Terveys Oy and Ikipihlaja Setälänpiha Oy sold their special housing services business to Esperi Care Oy. The transaction involved three Pihlajalinna Uniikki units in Hämeenlinna, Lohja and Riihimäki as well as Ikipihlaja Oiva in Raisio. As a result of the arrangement, more than 100 employees transferred to Esperi. Pihlajalinna is one of Finland’s leading private providers of social and healthcare services, offering a wide range of services to both private and public sector clients. Pihlajalinna has more than 160 locations across Finland.
Case published 2.6.2025