Ericsson & Compaq sign global IT support deal

Ericsson and Compaq sign global IT support deal - Ericsson to outsource Desktop Infrastructure support to Compaq As part of its ongoing restructuring program Ericsson today signed a Memorandum of Understanding (MOU) with Compaq to outsource IT support. The first stage of the global agreement comprises parts of Ericsson's operations in the Nordic region, beginning in Sweden, Denmark, Finland and Norway, and its operation in the United Kingdom. The first stage of the deal will involve more than 40,000 workstations in the Nordic countries. Under the terms of the agreement, Compaq is taking over the personnel involved at Ericsson who currently provide IT support across the Nordic region - approximately 400 people. The transfer will become effective during the first quarter of 2000. The agreement means that Compaq will provide Ericsson with IT support in the form of hardware, services, operation, help desk and onsite support in the effected Ericsson companies. Ericsson IT employees affected by the agreement will be offered new contracts with Compaq. Björn Boström, Senior Vice President, Supply and Information Technology at Ericsson said: "With Compaq's help we will be able to standardise and simplify our purchasing and maintenance of PC hardware. In the long term, this will mean substantial cost benefits. In addition, the agreement means that we will continue our program of concentrating resources on Ericsson's core operations." Compaq and Ericsson have a long and extensive business relationship involving computer hardware and services. In addition, Compaq equipment is integrated into certain Ericsson switch products. Werner Koepf, Vice President and General Manager, Compaq Computer EMEA said: "This agreement with Ericsson is another example of the results from our efforts to provide our international customers with world class IT services. As the worlds largest computer manufacturer and the second largest information technology company in the world, we are very pleased to co-operate with Ericsson." Editor's note: Ericsson and Compaq are unable to disclose the financial terms of the deal. Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over. Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom FOR FURTHER INFORMATION, PLEASE CONTACT Per Zetterquist, Telefonaktiebolaget LM Ericsson Phone: + 46 70 519 04 75, E-mail: per.zetterquist@lme.ericsson.se Simon Jones, Compaq Computer EMEA, Phone: +49 89 9392 4572, E-mail: simon.p.jones@compaq.com Mark Herford, IPR Phone: +41 22 793 0400, E-mail: mherford@shandwick.ch About Compaq Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices. Compaq products are sold and supported in more than 100 countries through a network of authorised Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com