Nokia Siemens Networks R&D Outsourced To IBM

IBM said Monday that it has signed a deal to provide a range of research and development services to Nokia Siemens Networks -- a networking company formed after the spin-off of several related businesses by mobile phone manufacturer Nokia and engineering giant Siemens.

Under the agreement, IBM will take on R&D for NSN's next generation voice and multimedia services, mobile Internet products, and voice-over-Internet offerings. About 235 NSN employees will transfer to IBM as a result of the deal.

The agreement is part of a broader push by NSN to outsource its R&D activities in order to cut costs and gain access to specialized knowledge. "This move provides Nokia Siemens Networks with the flexibility it needs to successfully compete in the market," said Jurgen Walter, head of service core and applications, Nokia Siemens Networks, in a statement.

IBM said it will eventually use some of the assets acquired in the deal to provide similar R&D services for other customers, as part of its global engineering solutions portfolio.

IBM said that it expects the agreement to go into effect in December. Financial terms were not disclosed.

Separately, IBM said Monday that it has launched a joint venture company in the U.K. that will provide technology and administrative services to two local authorities in the country.

The company, Southwest One, will provide support in the areas of IT, finance, human resources, and other disciplines to Somerset County Council and Taunton Deane Borough Council in Southwest England. Southwest One will generate billings of about $800 million over 10 years, IBM said.