HP Services will take responsibility for Ericsson's global IT infrastructure and will consolidate and optimize their IT environment. HP Services will provide a range of services including: implementation of a common global operating environment; server consolidation; automation of operations with HP Utility Data Center (UDC) technology; data center management and consolidation; help desk consolidation; and desktop standardization.

"Outsourcing of IT operations is part of Ericsson's ongoing changes within the IS/IT area, and our overall restructuring program aiming at radically reducing the operating expenses and cost of sales," said Per-Arne Sandström, deputy chief executive officer at Ericsson.

"Technology should be evaluated in terms of the business value it delivers. The announcement with Ericsson reinforces the strength of our step-by-step collaborative approach that enables us to deliver a more flexible and adaptive IT environment while lowering the total cost of ownership for our customers, " said Carly Fiorina, HP chairman and chief executive officer.

Approximately 1000 IT professionals will transition from Ericsson to HP and HP will acquire Ericsson's IT infrastructure. Ericsson will retain control of its network. The transition will begin in July, pending appropriate regulatory approvals.

The deal, which covers Ericsson's operations worldwide in more than 100 countries, strengthens HP Services' leadership in the global telecommunications market.