Nokia-IBM deal has minimal NZ impact

In an indication of the relative size of IT markets, only one person will be affected as a result of a global outsourcing deal Nokia has signed with IBM.

In an indication of the relative size of IT markets, only one person will be affected as a result of a global outsourcing deal Nokia has signed with IBM.

The deal was announced earlier this month. It involves IBM running Nokia's IT helpdesk and moving the desktop environment "towards a more resilient model", according to a joint Nokia-IBM statement.

The 200 million euro deal will see 430 staff transfer from Nokia to IBM in 36 countries and overall, 57 countries where Nokia operates are covered.

Nokia has one contracted IT staffer in New Zealand "and it's only who that person is contracted through that will be different", says Nokia New Zealand spokesman Lane Stephens. "The specifics of the contract are being worked through, but the level of service will remain."

Stephens declined to say who the present contractor is.

The deal, which is subject to competition authorities' approval, is similar to one signed between Ericsson and HP last year in which Ericsson's IT infrastructure was outsourced to HP.

In New Zealand Ericsson had already been outsourcing to EDS when the deal was announced and the arrangement was transferred to HP when the EDS deal expired at the end of 2003.

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