Ericsson opens new Global Services Unit in Bucharest

Ericsson, the world’s telecommunications service leader, announced it would open an Advanced Global Services Unit in Bucharest in July 2007 for both its local and regional customers, due to a rise in the service sector and new market needs.

“Such needs involve the administration of IT management operations, application development and support areas, and these are the main arguments in favor of opening a new Global Services Unit in Bucharest,” said Fredrik Strand, Vice President and Head of State Delivery of Business Unit Global Services of Ericsson.

Yesterday, Ericsson officials met Prime Minister Calin Popescu Tariceanu to confirm the decision for expanding operations in Romania by opening the Global Services Unit in Romania.

In Romania, services account for some 40 percent of Ericsson’s net sales. Company officials did not wish to make public the value of the investment, but they did mention it was a significant amount.

Ericsson’s main clients on the Romanian market are Romtelecom, Vodafone, Orange and Cosmote. “We decided to open this center in Romania because of the important clients and the great reputation we have here. This unit is not just a call-center,” said Adriana Boersma-Rodriguez, Country Manager for Ericsson Romania & Moldova. Ericcson entered the Romanian market in 1992, as a telecom solution supplier for the most important mobile telephone operators in Romania, developing and implementing projects such as 3G networks and the 112 emergency call system. The company has also begun producing phones locally through Solectron Timisoara.

Ericsson has announced it will initially hire 200 engineering graduates. “Ericsson has more than 3,600 employees in the region, and some 2,000 are working in services,” said Cesare Avenia, President, Ericsson South East Europe. In Romania, Ericsson currently has 130 employees.

Globally, Ericsson has some 40,000 employees. “At present, the service department has 24,000 employees worldwide, of which about 6,500 work in Global Services Units,” said Hans Vestberg, Executive Vice President and Head of Business Unit Global Services, Ericsson. With this unit in Romania, Ericsson will have 20 Global Services Units in countries such as Italy, Brazil, Canada, Mexico, USA, China, Malaysia, Lebanon, Finland, Germany, Hungary, the Netherlands, Sweden, Great Britain, Croatia, Ireland, and Spain. In Southeastern Europe, Ericsson has about 40 clients in over 11 countries, including Albania, Bulgaria, Cyprus, Greece, Macedonia, Montenegro, Romania and Serbia.