Nokia on Thursday said it will outsource the IT function to Indian technology firms TCS and HCL Technologies, a move that will see the Finnish handset maker cutting up to 300 jobs.
Nokia plans to transfer certain activities and up to 820 employees to HCLT and Tata Consultancy Services as part of the process, it said in a statement. The financial details were, however, not disclosed.
'Nokia outlined a range of planned changes on Thursday to streamline its IT organisation. Nokia believes these changes will increase operational efficiency and reduce operating costs, creating an IT organisation appropriate for Nokia's current size and scope,' the statement said.
Nokia, which has a strong presence in India including a manufacturing facility in Tamil Nadu, said it plans to reduce its 'global IT organisation by up to 300 employees... These are the last anticipated reductions as part of Nokia's focused strategy announcement of June 2012'.
The company had announced slashing of up to 10,000 jobs globally by the end of 2013 as part of the restructuring process.
The majority of the employees affected by the announcement today are based in Finland. 'Nokia will offer employees affected by these planned reductions both financial support and a comprehensive Bridge support program,' the company said. Nokia is beginning the process of engaging with employee representatives on these plans in accordance with country- specific legal requirements, it added.
The handset maker has been witnessing tough competition from rivals Samsung and Apple in the smartphone category. It lost its leadership position to Samsung but has been aggressively launching new products based on Microsoft's Windows platform along with other operating systems like Belle.
As part of the restructuring process, Nokia announced the closure of its facilities in Ulm (Germany) and Burnaby (Canada) last year. It also sold its luxury brand Vertu to a private equity firm, EQT.
Besides, it sold its head office building in Espoo to real estate investment firm Exilion for 170 million euros (over Rs 1,218 crore). The company ended the third quarter with gross cash of 8.8 billion euros, and a net cash position of 3.6 billion euros. Nokia Group's net sales in Q3 2012 stood at 7.2 billion euros, down from 7.5 billion euros in Q2 2012. Meanwhile, in a separate statement, HCLT said its new agreement with Nokia includes functions like data centre, network management, end-user computing services and cross- functional service management.
HCL QUARTERLY NET UP 68.5%
Software services major HCL Technologies on Thursday reported a 68.5 per cent jump in its net profit at Rs 964.7 crore for the quarter ended 31 December 2012, driven by growth in infrastructure and financial services. The company's net profit stood at Rs 572.7 crore in the October-December quarter of 2011, HCL Technologies said in a statement. It follows July-June fiscal year.
HCL Technologies also announced that Anant Gupta has been elevated to the position of President and CEO, replacing Vineet Nayar. He was earlier serving as the President and Chief Operating Officer.
HCL Tech's revenues stood at Rs 6,273.8 crore during the reported quarter, up 19.6 per cent from Rs 5,245.2 crore in the same quarter of FY12. 'Our growth this quarter was driven by infrastructure and financial services, both growing in excess of 10 per cent sequentially. Six large transformational deals have once again given us a billion dollar booking quarter,' Gupta said.
Nokia plans to transfer certain activities and up to 820 employees to HCLT and Tata Consultancy Services as part of the process, it said in a statement. The financial details were, however, not disclosed.
'Nokia outlined a range of planned changes on Thursday to streamline its IT organisation. Nokia believes these changes will increase operational efficiency and reduce operating costs, creating an IT organisation appropriate for Nokia's current size and scope,' the statement said.
Nokia, which has a strong presence in India including a manufacturing facility in Tamil Nadu, said it plans to reduce its 'global IT organisation by up to 300 employees... These are the last anticipated reductions as part of Nokia's focused strategy announcement of June 2012'.
The company had announced slashing of up to 10,000 jobs globally by the end of 2013 as part of the restructuring process.
The majority of the employees affected by the announcement today are based in Finland. 'Nokia will offer employees affected by these planned reductions both financial support and a comprehensive Bridge support program,' the company said. Nokia is beginning the process of engaging with employee representatives on these plans in accordance with country- specific legal requirements, it added.
The handset maker has been witnessing tough competition from rivals Samsung and Apple in the smartphone category. It lost its leadership position to Samsung but has been aggressively launching new products based on Microsoft's Windows platform along with other operating systems like Belle.
As part of the restructuring process, Nokia announced the closure of its facilities in Ulm (Germany) and Burnaby (Canada) last year. It also sold its luxury brand Vertu to a private equity firm, EQT.
Besides, it sold its head office building in Espoo to real estate investment firm Exilion for 170 million euros (over Rs 1,218 crore). The company ended the third quarter with gross cash of 8.8 billion euros, and a net cash position of 3.6 billion euros. Nokia Group's net sales in Q3 2012 stood at 7.2 billion euros, down from 7.5 billion euros in Q2 2012. Meanwhile, in a separate statement, HCLT said its new agreement with Nokia includes functions like data centre, network management, end-user computing services and cross- functional service management.
HCL QUARTERLY NET UP 68.5%
Software services major HCL Technologies on Thursday reported a 68.5 per cent jump in its net profit at Rs 964.7 crore for the quarter ended 31 December 2012, driven by growth in infrastructure and financial services. The company's net profit stood at Rs 572.7 crore in the October-December quarter of 2011, HCL Technologies said in a statement. It follows July-June fiscal year.
HCL Technologies also announced that Anant Gupta has been elevated to the position of President and CEO, replacing Vineet Nayar. He was earlier serving as the President and Chief Operating Officer.
HCL Tech's revenues stood at Rs 6,273.8 crore during the reported quarter, up 19.6 per cent from Rs 5,245.2 crore in the same quarter of FY12. 'Our growth this quarter was driven by infrastructure and financial services, both growing in excess of 10 per cent sequentially. Six large transformational deals have once again given us a billion dollar booking quarter,' Gupta said.