The deal will involve operations in 16 European countries for three years with the possibility of an additional two year extension.

EDS will run, service and develop Ericsson’s IT infrastructure in Western Europe. The agreement comprises local data networks, UNIX- and NT-servers, personal computers and tele networks, EDS said in a press statement.

This agreement follows on from the Ericsson’s outsourcing of mobile production to Singapore firm Flextronics earlier this year, within a reorganization program to help save 37 billion Krona annually.

In this agreement Ericsson said that all current employees would be offered jobs within EDS.