Nokia Siemens Networks said it has signed an outsourcing agreement with IT services company Tieto to take over some of NSN’s maintenance, technical support and research and development work from its mobile network operations support systems and subscriber data management group based in Finland.
The agreement will see approximately 240 NSN employees based in Tampere and Espoo, Finland, transferred to Tieto. NSN said the move was part of its global strategy announced last year in which it announced plans to focus on core areas of its it business. As part of that strategy, NSN said it would cut approximately 17,000 jobs, or almost 23% of its workforce, and focus its efforts on the mobile broadband market. Those plans are expected to cut $1.3 billion from the company’s overhead and operating expenses.
NSN has already sold off the WiMAX business to NewNet that it acquired when it purchased assets from Motorola Solutions. That was followed by the sale of its fixed-line broadband access business to Adtran.
The Tieto deal is expected to be completed next month.
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