Nokia Siemens Outsources Research & Development Activities to IBM

4:55 am on October 2, 2007 | Category: Business, Corporate, Wireless Technology

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Networking joint venture, Nokia Siemens Networks, revealed yesterday that it was outsourcing much of its research and development work to IBM, in a bid to cut costs and gain access to specialized knowledge.

The agreement will result in IBM taking over R&D for Nokia Siemens’ next generation voice and multimedia, mobile Internet, and VoIP operations. 235 Nokia Siemens employees in Berlin and Minich will be transferred to IBM, effective in December.

“This move provides Nokia Siemens Networks with the flexibility it needs to successfully compete in the market,” said the joint venture’s head of Service Core and Applications, Jurgen Walter.

IBM, meanwhile, has agreed to deliver the necessary R&D services back to Nokia Siemens, but may eventually use some of the acquired assets to provide similar services to other customers, as part of its Global Engineering Solutions portfolio.

Financial terms of the agreement were not released.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock