Ericsson scores big in Hong Kong
09 February 2006
Swedish vendor Ericsson today scored another managed services contract from Hong Kong conglomerate Hutchison Whampoa.
Under the agreement, Ericsson will take responsibility for the management of applications development and most of the back-end business support systems for Hutchison Telecom Hong Kong.
The announcement is Ericsson's first managed services agreement in Greater China and the vendor's fifth managed services contract with Hutchison Whampoa.
This latest deal follows successful joint operations with Hutchison in Australia, Italy, Scandinavia and the UK.
While the Hong Kong deal is not along the same levels, managed services is big business to Ericsson. In December, the managed service deal struck with 3 UK was the largest such partnership signed by Ericsson and claimed by the company to be one of the largest ever in the industry.
Ericsson did not reveal the value of the deal, but Jacqueline Hey, managing director, Ericsson UK & Ireland, put it in perspective. She confirmed the 3 UK agreement is worth considerably more than a similar deal the Swedish vendor struck with 3 Italy back in January 2005 for SKr15bn ($1.8bn).
Hey said that managed services contracts had been "a core part of [Ericsson's] strategy and focus for the last 10 years. "We have 55 managed services contracts at present and it is a significant part of our business," she said.
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