HP wins $500m Nokia outsourcing deal

HP has won a $500m outsourcing deal to provide IT services globally for mobile phone giant Nokia.

The contract is an extension of HP's current deal with Nokia dating back to 2001 and formalises the memorandum of understanding that was agreed back in February this year.

That original deal was valued at $185m over three years, with cost savings targets of 25 per cent. Any savings over that target were to be shared between the two companies.

HP will continue to provide IT services for Nokia's 51,000 staff and manage the IT infrastructure and operations for the mobile company's messaging, groupware and network.

HP is touting the contract as a "service-based" model that allows Nokia to reduce costs and meet fluctuating business requirements with billing based on actual IT service consumption.

Mikko Kosonen, CIO and senior VP of business infrastructure at Nokia, said the deal will help Nokia cut costs in its non-core IT activities.