Ericsson ( ERICY) inked a five-year contract to outsource its information-technology operations to Hewlett-Packard ( HPQ), the wireless-equipment maker announced on Wednesday.

The deal calls for Ericsson to transfer its worldwide data-center management and help desk support, along with nearly 1,000 employees to Hewlett-Packard.

Ericsson's information-services operations, including the development and management of various applications, were excluded from the deal.

The company said the move is part of its continuing efforts to cut costs. Ericsson has said that it expects network sales to fall 10% this year.

Financial terms of the deal weren't disclosed and it requires approval by regulatory agencies in Europe and the U.S. The agreement was first announced in April when Hewlett-Packard unveiled similar contracts with Procter & Gamble ( PG) and the Bank of Ireland ( IRE).

Ericsson was up 2 cents to $10.18, and H-P was adding 94 cents at $21.01.