STOCKHOLM, Sweden, April 11, 2003 (PRIMEZONE) -- Ericsson (Nasdaq:ERICY) today signed a Memorandum of Understanding with HP for outsourcing of Ericsson's information technology (IT) infrastructure. Under the final intended agreement HP will provide IT services for Ericsson's operations worldwide. The Memorandum of Understanding establishes the principles of how Ericsson and HP intend to work together. The final agreement is expected to be signed before end of Q2 2003.
The intended agreement will include transfer of personnel at Ericsson Global IT Services (EGIS) to HP.
The decision to outsource the IT operations is part of Ericsson's ongoing changes within the IS/IT area. By outsourcing its IT operations Ericsson expects to 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.
IS operations, i.e. development, implementation and management of applications, will not be included in the agreement with HP.
Ericsson is unable to disclose the financial terms of the agreement.
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