- News>
- ICE Economy
Ericsson in pact with H-P, to move 1,000 staff
Stockholm, June 05: Swedish telecom equipment maker Ericsson said on Wednesday it would transfer about 1,000 employees to Hewlett-Packard as part of a five-year outsourcing deal for its information technology operations worldwide.
Stockholm, June 05: Swedish telecom equipment maker Ericsson said on Wednesday it would transfer about 1,000 employees to Hewlett-Packard as part of a five-year outsourcing deal for its information technology operations worldwide.
The deal, of an undisclosed value, will help Ericsson, the world's biggest producer of mobile networks, meet its goal of returning to profit sometime this year on a shrinking market.
Ericsson signed a memorandum of understanding with Hewlett-Packard on the deal in April but did not say then how many staff would be affected. In the red for 10 straight quarters, Ericsson wants to cut its workforce to 47,000 in 2004 from 61,000 now, and outsourcing non-core businesses is one of the ways to do it.
"Outsourcing of IT operations is part of Ericsson's... overall restructuring programme aiming at radically reducing the operating expenses and cost of sales," Ericsson deputy chief executive Per-Arne Sandstrom said in a statement.
The transfer of staff and assets to Hewlett-Packard will start in July, Ericsson said. HP will manage data centres, the help desk and computer desktops in more than 100 countries.
Bureau Report
Ericsson signed a memorandum of understanding with Hewlett-Packard on the deal in April but did not say then how many staff would be affected. In the red for 10 straight quarters, Ericsson wants to cut its workforce to 47,000 in 2004 from 61,000 now, and outsourcing non-core businesses is one of the ways to do it.
"Outsourcing of IT operations is part of Ericsson's... overall restructuring programme aiming at radically reducing the operating expenses and cost of sales," Ericsson deputy chief executive Per-Arne Sandstrom said in a statement.
The transfer of staff and assets to Hewlett-Packard will start in July, Ericsson said. HP will manage data centres, the help desk and computer desktops in more than 100 countries.
Bureau Report