TietoEnator and Siemens to expand their cooperation in R&D services in Germany

21 March 2006, TietoEnator and Siemens deepen their co-operation of several years and negotiate to transfer TDM switching and migration to next generation networks from Siemens Communications R&D to TietoEnator. For TietoEnator this would significantly grow and deepen TietoEnator’s business relation with Siemens Communications. The transfer process is initiated and means that approximately 270 employees from Siemens Communications R&D, most of them in Munich, Germany, will be transferred to TietoEnator Telecom & Media. The intention is to sign the agreement in May with final transaction on 1 July, 2006.

“During the last years TietoEnator took over employees from Siemens Finland, Nokia, Alcatel and Ericsson and integrated them successfully. A success for all parties involved; the companies enhance their flexibility, TietoEnator grows its strategic partnerships, the employees secure their jobs and expand their competences towards new fields of expertise”, says Frank Eser, Director R&D for core components in telecommunication networks at Siemens Communications, who will come to TietoEnator himself.

High-speed technology development, shortened product life-cycles, and increased complexity as well as the convergence of not only the ICT and fixed/mobile telecom world, but also other industries such as automotive, generate a strong need for an integrated approach, cross-leveraging expertise between these formerly seperated areas. Due to TietoEnator’s competences and its strategic direction, the company is well positioned to play a major role here and can already be considered the clear leader in European telecom R&D services.

“Telecom is one of TietoEnator’s focus areas on a global level and by strengthening our partnership with a world leading customer as Siemens we take a big step towards becoming a global player in the telecom area”, says Ari Vanhanen, President, TietoEnator Telecom & Media.

"We are now able to support Siemens even further on their journey to be best-in-class. We contribute with our deep understanding of the business environment and the successful track record we share with Siemens, says Jürgen Hatzipantelis, Senior Vice President, TietoEnator Telecom & Media.

The transition of employees is conditional to German legislation. Siemens will buy services from TietoEnator for approx. five years. TietoEnator expects that the effect on its net sales is about EUR 15 million in the second half of 2006 and the commitment for the whole contract period approximately EUR 100 million.

TietoEnator’s Telecom & Media business area employs close to 5 000 professionals in 14 countries. Its broad service portfolio covers R&D services, consulting, IT system development and integration for the full telecom and media value chain. The company operates as a partner to its global customers, assisting them in the development of their products and business processes.

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 over 15 000 experts in more than 25 countries.
www.tietoenator.com

The Siemens Communications Group is one of the largest players in the global telecommunications in¬dustry. The company offers a full-line portfolio of innovative solutions for voice and data communication. Its comprehensive offerings range from devices right through to complex network infrastructures and services for wireless, fixed and enterprise networks. It is the largest Group within the Siemens organiza¬tion and operates in more than 160 countries around the world. In fiscal 2005 (September 30), its 54,500-strong workforce posted sales of over 13 billion euros.
More about Siemens Communications at http://www.siemens.com/communications

Contact Information

Jürgen Hatzipantelis

Senior Vice President, TietoEnator Telecom & Media

TietoEnator Corporation

Contact via E-mail