The new agreement is valued at approximately $100m per year, and formalises a memorandum of understanding announced in February.

Extending the companies original collaboration that began in 2001, HP says that it will continue to manage the ICT infrastructure and operations for Nokias messaging, groupware and network.

In addition, HP aims to enable the transformation of Nokias ICT infrastructure environment to a service-based model, helping Nokia to reduce costs and meet its varying business requirements by providing services that are billed based on actual ICT service consumption.

This agreement is a reflection of Nokias strategy of collaboration, and specifically helps us achieve greater efficiencies in our non-core ICT activities, said Mikko Kosonen, CIO and senior vice-president, Business Infrastructure, Nokia.

HP has already demonstrated its excellent outsourcing ability and a deep understanding of our needs. We are confident that HP can use this expertise in building a service-based ICT environment for us as well.
Todays announcement reaffirms our strong relationship with Nokia and will extend it to eight years from its beginning in 2001, said Francesco Serafini, senior vice-president and GM, Technology Solutions Group Europe, Middle East and Africa, HP.

We feel that the service-based approach is the natural evolution of the existing outsourcing initiative between HP and Nokia. HP will move from a technology and operationally driven service model to a business-needs and service-level driven model. Through this standardisation of services and the new approach for Nokia, HP will help Nokia achieve additional significant cost savings.

HP provides Nokias ICT solution based on its Adaptive Enterprise strategy, which is designed to help companies measure, architect and manage change by creating a tighter linkage between business and ICT.