Nokia Corp., & Hewlett-Packard
NEW YORK (CBS.MW) -- Hewlett-Packard announced it's won a $185 million services contact from cell phone-maker Nokia Corp., the first contract of its size the computer maker had reported since its proposed acquisition of Compaq.
Under the terms of the agreement, H-P's services group will run and manage Nokia's technology centers in Finland, the United States, China and Singapore. It's Nokia's largest outsourcing agreement to date.
The project, expected to start Nov. 1, is expected to update several aspects of Nokia's information technology, while minimizing equipment costs.
"This outsourcing agreement is a mutual win for HP and Nokia," H-P said in a statement.
Executives from H-P were not immediately available for comment.
The contract will require H-P to manage Nokia's e-mail system, as well as the cell phone-maker's file print and sharing services for 60,000 global employees. H-P will manage the services, as well as the 3,000 computer servers needed to run it.
About 260 of Nokia's technology employees will become H-P employees as a result of the agreement, H-P announced.
Cost reduction benefits to Nokia are expected to be about 25 percent over the three-year term, compared with the cost of Nokia managing and running the project.
Shares of H-P (HWP: news, chart, profile) fell 21 cents to $15.89 in New York Stock Exchange trading, while Nokia (NOK: news, chart, profile) shares rose 30 cents to $17.38.