sealed a deal this week with one of Italy’s foremost wireless telecommunications companies, Telecom Italia
, resulting in a profitable, five-year outsourcing alliance.
The outsourcing agreement was reportedly valued at 225 million Euros, or $244 million in U.S. currency, and will require HP to provide IT services for Telecom Italia’s 90,000 employees.
However, final approval from the Italian Antitrust Authority is still pending, the company said.
Under the terms, HP will train and work with Telecom Italia’s 600 IT professionals from IT Telecom, the company’s business unit, to help maintain the company’s IT investments. HP will also take over asset management, help desk, maintenance, and management services.
The benefits of the deal for Telecom Italia, according to a statement, will be cost and resource savings in its IT department and an increased focus on its wireline and wireless telco services.
In exchange, the Italian telco will host HP ‘Service Advertising Protocol’ (SAP) business software system solutions for the Italian marketplace, the company said.
According to an HP spokesperson, HP and Telecom Italia will eventually form a new services delivery company based on HP’s SAP software systems.
The company will be entirely owned by HP, said the spokesperson. A select number of Telecom Italia employees will transfer over to the new company, which will be headquartered in Italy, the spokesperson said.
Following HP’s announcement of its outsourcing deal with Telecom Italia, the company saw its share value spike up 38 cents to $18.25 per share.