Nokia signs IBM for five-year IT outsourcing deal

IBM has won a five-year, €200m (£138m) IT global outsourcing deal with Nokia.

IBM has won a five-year, €200m (£138m) IT global outsourcing deal with Nokia.

IBM will handle Nokia's IT Helpdesk operations as well as manage and develop the company's desktop IT environment, according to Tapani Kaskinen, a spokesman for Nokia.

"Certain services have been carried out by Nokia ourselves, but particularly with the IT helpdesk, we thought that through outsourcing we could achieve cost efficiencies," Kaskinen said.

"Also, we believe that we'll be able to benefit from IBM's latest technologies and services and that outsourcing will give us greater flexibility while allowing us to focus on our core competencies."

IBM beat a number of competitors for the contract, including Hewlett-Packard and Electronic Data Systems.

"One of the main reasons we got this contract is because of our capabilities in human resources," said an IBM spokeswoman. As part of the agreement, about 430 people will join IBM from Nokia in 36 countries.

The IBM services will be provided to Nokia employees in 57 countries, said Jens Boegh Nielsen, IBM's client solution executive, and the person charged with overseeing the day-to-day operations of the deal.

The services are geared towards the end-user environment and built around IBM's On Demand computing initiative, which also uses its Tivoli management software, Boegh Nielsen said.

"The deal is structured around the consumption-based user model and is built on some of IBM's latest and most advanced technologies," he added.

Along with providing services for desktops, IBM will also offer services over PDAs and wireless devices.

The first of IBM's services for Nokia are expected to begin in April.

Laura Rohde writes for IDG News Service

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