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NEWS
HP Wins Global IT Service
Agreement with Nokia
(September 25, 2001)
Fixed IT Environment to be
Transformed into Scalable, Risk-free Infrastructure
PALO ALTO, Calif., Sept. 25, 2001 -- Hewlett-Packard Company (NYSE:HWP) today
announced that it has been selected by Nokia Corporation (NYSE:NOK) to manage
several of Nokia's business-critical IT services. HP will focus on transforming
Nokia's fixed IT environment to a flexible, scalable infrastructure, improving
service performance while minimizing recurring fixed costs. The agreement,
valued at $185 million over a three-year term, was signed today and is expected
to commence on Nov. 1.
Under the terms of the agreement, HP Services will run and manage Nokia's
business infrastructure operation centers in Finland, the United States, China
and Singapore. HP Services will manage Lotus® Notes groupware, Microsoft(TM)
Exchange messaging and file print and sharing services for Nokia's 60,000 global
users. HP will assume responsibilities for supporting these services and 3,000
servers in seven operation centers worldwide. Approximately 260 Nokia IT
employees will become HP employees as a result of the agreement.
HP's outsourcing approach minimizes Nokia's financial risks in IT services by
defining specific cost-savings targets and jointly sharing any savings over and
above the target. Cost reduction benefits to Nokia are expected to be
approximately 25 percent over the three-year term. This is the largest IT
outsourcing agreement that Nokia has signed to date.
"This outsourcing agreement is a mutual win for HP and Nokia," said
Ann Livermore, President, HP Services. "Nokia will benefit from HP
Services' proven expertise in managing complex, global IT infrastructures, and
HP will inherit a solid Nokia IT team that will continue to provide excellent
levels of service to Nokia."
"We are pleased to be working with a global service provider of the caliber
of HP. It is a natural fit, not only in terms of competence but also values and
culture," said Mikko Kosonen, Senior Vice President, Nokia Strategy and
Information Management. "The deal, which will bring significant annual cost
savings through economies of scale, is part of Nokia's on-going strategy of
building on core skills, while teaming up with good global partners."
About Hewlett-Packard
Hewlett-Packard Company -- a leading global provider of computing and imaging
solutions and services -- is focused on making technology and its benefits
accessible to all. HP had total revenue from continuing operations of $48.8
billion in its 2000 fiscal year. Information about HP and its products can be
found on the World Wide Web at www.hp.com.