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Ericsson considers outsourcing IT operations

Mobile communications giant Ericsson is looking at outsourcing its IT operations and the possibility of halting funding of Sony Ericsson Mobile Communications, its joint venture with Sony, in a bid to cut costs.

Ericsson is restructuring its business and aims to cut staff levels from 76,000 to fewer than 60,000 employees.

As part of that restructuring, the company is looking for an outsourcing company to take over its global IT operations, which employ about 4,000 staff at present.

Last week, Ericsson chief executive officer Kurt Hellström said that he wanted to see "real acceptance" of the joint venture's range of mobile handsets due to be launched this autumn. He warned that if sales were unsatisfactory in the next two quarters, Ericsson would not be prepared to keep throwing money at the loss-making joint venture.

One of the latest phones that will make or break Sony Ericsson is the T300 colour-screen phone, which has an attachable camera and can play high-speed downloadable games.

In the second quarter of this year, Ericsson reported a loss of £243m, an improvement on the loss of £970m for the same period last year.

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