HP signs $500m outsourcing deal with Nokia

Hewlett-Packard said this morning it had signed a five-year technology outsourcing agreement with Nokia worth $100 million per…

Hewlett-Packard said this morning it had signed a five-year technology outsourcing agreement with Nokia worth $100 million per year, finalising a deal first flagged in February.

HP said in a statement that with the deal was an extension and expansion of a contract originally signed in 2001.

Large multinationals like Nokia sign such deals to reduce costs, handing over the day to day administration of selected IT functions to better focus on their core businesses.

Nokia earlier this year agreed on a five-year outsourcing contract with HP rival IBM that involved 430 workers in 36 countries and was worth €200m euros.

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IBM will run Nokia's helpdesk and desktop IT operations, while HP manages Nokia's data centre activities such as big storage and server computers.

Nokia will pay for the computer services it actually uses, as opposed to a fixed amount.