Ericsson has signed a preliminary agreement to outsource its computer services operations to IBM, it said this afternoon.
The move would mean transferring some 1,000 Ericsson workers to IBM.
Ericsson, the world's largest supplier of equipment for wireless phone networks, said it expects to complete the deal by October. No financial details were disclosed.
The move is similar to one made earlier this year with Hewlett-Packard, which also involves transferring 1,000 workers.
Last year, Ericsson said it planned to outsource nearly all of its computer operations to trim costs and gain greater flexibility to adjust its spending as industry conditions change.
An Ericsson spokesman said the Swedish company would retain a small group to manage its relationships with the two partners so that "we control our own destiny".
It plans to have reduced the strength of its work force by the end of this year to about 54,000, down from the 107,000 it employed in 2001.