ontarioguy
13-06-2003, 18:39
[SOURCE TORONTO STAR]
Sweden (AP) — Wireless equipment maker LM Ericsson said today it has signed a five-year contract to let Hewlett-Packard Co. handle most of its information technology work.
The deal, announced in April, calls for Palo Alto, Calif.-based HP to take over Ericsson IT infrastructure, including data centre management and help desk support. Nearly 1,000 Ericsson workers will be transferred to HP as part of the deal, which will cover the Swedish telecom's operations worldwide.
Terms of the deal, which takes effect in July pending approval by regulatory agencies in Europe and the United States, weren't released.
The deal is part of Ericsson's ongoing effort to cut costs, said Per-Arne Sandstroem, the Stockholm-based company's deputy chief executive.
Not part of the deal is Ericsson's information services operations, which include the development and management of various applications.
Ericsson, the world's biggest supplier of network equipment, has seen mobile operators cut spending on their existing networks, and delay or scale back plans for newer, faster networks. The company expects network sales to fall 10 per cent this year.
Sweden (AP) — Wireless equipment maker LM Ericsson said today it has signed a five-year contract to let Hewlett-Packard Co. handle most of its information technology work.
The deal, announced in April, calls for Palo Alto, Calif.-based HP to take over Ericsson IT infrastructure, including data centre management and help desk support. Nearly 1,000 Ericsson workers will be transferred to HP as part of the deal, which will cover the Swedish telecom's operations worldwide.
Terms of the deal, which takes effect in July pending approval by regulatory agencies in Europe and the United States, weren't released.
The deal is part of Ericsson's ongoing effort to cut costs, said Per-Arne Sandstroem, the Stockholm-based company's deputy chief executive.
Not part of the deal is Ericsson's information services operations, which include the development and management of various applications.
Ericsson, the world's biggest supplier of network equipment, has seen mobile operators cut spending on their existing networks, and delay or scale back plans for newer, faster networks. The company expects network sales to fall 10 per cent this year.