Three UK - the 3G mobile outfit owned by Hutchison Whampoa - is looking to outsource its IT development work to Siemens, sources claim.

At this stage it's not known how far negotiations have progressed. Staff have yet to be told of the changes although insiders say that an official announcement is due shortly and could be made before the end of the month.

Details of the outsourcing remain sketchy, but it's understood that part of the reason for the move is to cut costs at the mobile phone outfit ahead of a bid to float the business.

The UK arm is expected to hit positive EBITDA this year, and parent group Hutchison Whampoa may look to float it before mid-2006.

A spokesman for 3 UK was asked to respond but declined to comment on "rumour and speculation". As did a spokesman for Siemens.®

Related stories

• Ericsson to babysit 3's UK phone network (6 December 2005)
• Pearl casts 950 jobs over to Tata (18 October 2005)
• 3 UK lets subscribers be video stars (18 October 2005)
• 3 UK confirms mobile web plans (12 September 2005)
• Indian company creates 600 UK jobs (8 September 2005)
• 3 UK to expand handset net access (7 September 2005)
• Logica bypassing India, heading to Philippines (1 September 2005)
• ABN AMRO cuts 1,500 jobs (1 September 2005)
• 3 goes live in Ireland (26 July 2005)
• Hutchison hit by 3G costs (4 April 2005)
• Hutchison buys out Italian 3G partner for €470m (23 December 2004)
• 3 UK claims 1.2m subscribers (19 August 2004)
• 3 won't flee UK (1 June 2004)