TietoEnator secures R&D deal with Nokia Siemens

Nokia Siemens Network has awarded an R&D outsourcing contract to Finland-based IT company TietoEnator, a Nordic Business Report said.

Financial terms of the contract were not disclosed, the report said.

Under the deal, TietoEnator will provide R&D services on IP multimedia subsystems (IMS) and on mobile intelligence networks for Nokia Siemens Networks.

As a result, approximately 230 employees will be transferred to TietoEnator.

The closing of the transaction is anticipated to take place by the end of June, the report further said.

TietoEnator is one of Europe's largest IT groups, with over 15,000 employees in more than 25 countries.

Research firm Ovum meanwhile said the deal is important for TietoEnator, as it expands its relationship with two of its three main telecom equipment clients

In March 2006, TietoEnator had won a large R&D contract from Siemens Communication with a total contract value of 100 million euros.

"This news confirms that TietoEnator stands well in one of its major markets and in fact is able to expand its relationship," Ovum analyst Dominique Raviart said. "This one deal should be quite big, with the number of transferred staff similar to the March 2006 contract."