Nortel Networks is to outsource its European administrative support to PricewaterhouseCoopers. Over 160 Nortel employees, based in the south east of England and in France, will transfer to PwC to administer a range of functions from payroll, human resources and workforce performance in the UK to non-production purchasing and accounts payable across Europe.

The deal follows an original five-year BPO agreement signed between PwC and Nortel in April to run management operations in the US and Canada.

Nortel, with a $21.3bn revenue last year and 70,000 employees worldwide, offers PwC a massive multimillion pound global market as demand for communications network expands.