Nokia Siemens Networks deepens R&D ties with TietoEnator in Finland

Nokia Siemens Networks deepens R&D ties with TietoEnator in Finland

Approximately 230 people will transfer to TietoEnator in a contract that strengthens Nokia Siemens Networks’ competitive position, reduces the need for headcount reductions in Finland, and underscores the strong relationship between the two companies. The closing of this transaction is anticipated to take place by the end of June, 2007.

Nokia Siemens Networks has signed a contract with TietoEnator that will see around 230 research and development employees transfer to TietoEnator Telecom & Media. Personnel that will move are based in Tampere and Helsinki, and work in the Service Core & Applications and Operations and Business Software Business Units, as well as in Research, Technology and Platforms.

On May 4, 2007, Nokia Siemens Networks announced that part of its strategy of realizing its overall synergy saving target of EUR 1.5 billion annually by the end of 2010 is to look into possibilities to transfer personnel to trusted business partners. The company also announced plans for a headcount reduction in the range of 1,500-1,700 people in Finland, including 700 reductions in the initial consultation process. Today’s announcement is, to some extent, expected to reduce the number of planned layoffs.

“Nokia and Siemens, the parent companies of Nokia Siemens Networks, have successfully partnered with TietoEnator over the recent years,” said Mika Vehviläinen, chief operating officer of Nokia Siemens Networks. “This agreement is good for TietoEnator and for the employees of Nokia Siemens Networks. It reduces the need for layoffs, gives Nokia Siemens Networks additional flexibility and transfers people to a strong partner where their competencies will be a natural fit.”

“Nokia Siemens Networks’ customer relationships will not be affected by the move. In fact, customers will reap the benefits as this agreement strengthens our capabilities to provide them with high quality software and products,” Vehviläinen added.

“We are delighted by the trust that Nokia Siemens Networks shows for TietoEnator. The agreement gives us even further responsibilities for some of Nokia Siemens Networks’ products, which proves that our R&D On-demand concept benefits our customers and strengthens TietoEnator’s position as the leading provider of R&D Business Process Outsourcing (BPO) for the telecom sector,” said Ari Vanhanen, President, TietoEnator Telecom & Media.

About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. The combined pro-forma net sales of €17.1 billion in fiscal year 2006 make Nokia Siemens Networks one of the largest telecommunications infrastructure companies. Nokia Siemens Networks has operations in some 150 countries and is headquartered in Espoo, Finland. It combines Nokia’s Networks Business Group and the carrier related businesses of Siemens Communications.
www.nokiasiemensnetworks.com

About TietoEnator
TietoEnator is among the leading architects in building a more efficient information society and one of the largest IT services providers in Europe. TietoEnator specializes in consulting, developing and hosting its customers’ business operations in the digital economy. The Group’s services are based on a combination of deep industry-specific expertise and the latest information technology. TietoEnator has about 16 000 experts in close to 30 countries.
www.tietoenator.com

Media Enquiries

Nokia Siemens Networks
Brett Young
Phone : +358 71 802 8084
e-mail : mediarelations {at} nsn(.)com

TietoEnator
Ari Vanhanen
President, TietoEnator Telecom & Media
Phone: +49 (0)171 423 24 36