Michael,
I like these numbers too.
--
Compaq Gets $150 Million Ericsson IT Outsourcing Deal
May 03, 2000 9:19 AM
LONDON -(Dow Jones)- LM Ericsson AB (ERICY) Wednesday signed a contract to outsource its
information technology and support efforts to Compaq Computer Corp. (CPQ), a five-year deal initially
valued at $150 million.
Savings of SEK100 million (roughly $11.5 million) a year are envisioned, the Swedish
telecommunications company added.
The agreement takes effect immediately and covers some 20,000 end users in Ericsson's
Swedish-based companies.
The contract builds on a memorandum of understanding concerning desktop infrastructure support the
two companies signed last December.
That deal in its first stage covered some 40,000 workstations in the Nordic region, with Compaq taking
over the role of some 400 Ericsson IT staff in the first quarter of this year.
The new contract will see about 170 employees transfer from Ericsson to Compaq, where they will be
responsible for updating technology, server management, a help desk and maintenance.
"The agreement with Compaq is an important link in Ericsson's IT standardisation agenda," said
Haakan Liedman, Ericsson's chief information officer. "Customers demand easy access to Ericsson
and to our services. Flexibility in a truly global organisation requires standardisation of the IT platform."
-By Robb M. Stewart; 44-20-7842-9294; robb.stewart@dowjones.com
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