The agreement, valued at $185 million over a three-year term, was signed today and is expected to commence on Nov. 1.
Under the terms of the agreement, HP Services will run and manage Nokia’s business infrastructure operation centers in Finland, the United States, China and Singapore. HP Services will manage Lotus® Notes groupware, Microsoftä Exchange messaging and file print and sharing services for Nokia’s 60,000 global users. HP will assume responsibilities for supporting these services and 3,000 servers in seven operation centers worldwide. Approximately 260 Nokia IT employees will become HP employees as a result of the agreement.
HP’s outsourcing approach minimizes Nokia’s financial risks in IT services by defining specific cost-savings targets and jointly sharing any savings over and above the target. Cost reduction benefits to Nokia are expected to be approximately 25 percent over the three-year term. This is the largest IT outsourcing agreement that Nokia has signed to date.
This outsourcing agreement is a mutual win for HP and Nokia, said Ann Livermore, president, HP Services. Nokia will benefit from HP Services’ proven expertise in managing complex, global IT infrastructures, and HP will inherit a solid Nokia IT team that will continue to provide excellent levels of service to Nokia.
We are pleased to be working with a global service provider of the caliber of HP. It is a natural fit, not only in terms of competence but also values and culture, said Mikko Kosonen, senior vice president, Nokia Strategy and Information Management. The deal, which will bring significant annual cost savings through economies of scale, is part of Nokia’s on-going strategy of building on core skills, while teaming up with good global partners.
SOURCE: COMPANY PRESS RELEASE
