STOCKHOLM, Sweden-L.M. Ericsson said it has signed a five-year contract to outsource its information technology infrastructure to Hewlett-Packard Co.
HP will provide IT services for Ericsson’s operations worldwide.
“Outsourcing of IT operations is part of the Ericsson’s ongoing changes within the IS/IT area, and its overall restructuring program aiming at radically reducing the operating expenses and cost of sales,” said Per-Arne Sandstrom, deputy chief executive officer at Ericsson.
The memorandum of understanding between the two companies was first announced in April.
Ericsson said at the time the move was part of its plans to cut costs and move to profitability. The decision also includes the transfer of Ericsson’s IT personnel.
