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The City of Stockholm has selected Tieto as a one-stop supplier of IT and telephony services as per the option described in the existing general agreement between the parties.

The order value during the extension period corresponds to more than US $ 71 million, of which Tieto's proportion comprises about US $ 36 million.

Officials with Tieto said that the delivery will be made in cooperation with SiriusIT, Aditro, Agresso and TeliaSonera (News - Alert).

Tieto is the agreement owner and bears overall responsibility for the undertaking.

"At the City of Stockholm we are pleased with the extended agreement, because it enables us to continue this well-established and effective cooperation," said Irene Lundquist Svenonius, CEO of the City of Stockholm.

According to company officials, the original general agreement between Tieto and the City of Stockholm was signed in 2005 and covers computer operations, systems administration, service desks and telephony. 

Today's agreement extension applies as of Aug. 1, 2012 until July 31, 2014 inclusive.

"We're very proud that the City of Stockholm has continued to entrust us with this task, and we look forward to supporting the city in its long-term development. The deal will also further strengthen Tieto's position as a leading outsourcing partner for the public sector," saidEva Gidlöf, executive vice president, country head of Tieto Sweden.

Tieto is an IT service company providing IT, R&D and consulting services. 

Earlier this month Tieto and Red Hat, a provider of open source solutions, have collaborated to advance open source offerings. Tieto is the first Finnish organization to join Red Hat's (News - Alert) Advanced Partner program. 

This partnership will also cover Sweden, Denmark and other major European markets and will enable Tieto to offer value-added IT services combined with Red Hat's enterprise class open source middleware and platform solutions. 

Customers are expected to benefit from more accessible and cost effective technology, company officials said.