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HP signs IT outsourcing MOU with Ericsson

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Ericsson is planning to outsource its IT infrastructure operations to HP, and the pair have signed a memorandum of understanding today setting out how they will work together. A final agreement should be in place before the "end of Q2, 2003, Ericsson says.

Staff at Ericsson Global IT Services (EGIS) will transfer to HP, but numbers and financial details are not yet disclosed. The telecoms equipment maker will hang onto its software apps development, implementation and management teams.

Ericsson has been under enormous financial strain over the last couple of years. It wants see some pressure relieved with the HP deal, which will "substantially reduce the overall IT cost and achieve greater flexibility in adjusting resources and expertise to meet fluctuations in its business and in the industry".

Ericsson today also announced a contract win - no financial details, but we assume it was worth getting - to build 3's 3G network in Denmark, so it's been very busy. As has HP, which today announced that a huge win of its own, a $3bn outsourcing deal with Procter & Gamble. ®

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