T-Systems, one of the largest indigenous IT services businesses in
Europe, is an extremely large IT services division of the even
larger telecommunications giant Deutsche Telekom Group (T-Mobile is
the wireless division). Just to give you an idea of how large
it is, Deutsche Telekom pulled down €8.8 billion revenue in
2009. There are various services offered by the IT division,
including systems integration, SAP support, customer relationship
management, security and business process outsourcing.
T-Systems' roster of clients includes various global
corporations and European public institutions that look to the
company for support in Information and Communication Technology
(ICT) needs. T-Systems is able to meet the ICT demands of its
clients effectively because of its worldwide computer centers and
networks. The quality of service rendered by the company is
evident in its rapid growth: its global customers total 160,000 and
its workforce has grown to 46,000 employees in 20 countries.
Not stopping to improve its services, T-Systems' goal in 2010 was
to become one of the top three in all large accounts customer
segments in Europe, as well as to grab the lead for medium-sized
businesses market in Germany.
High-tech systems from aerospace to FIFA
As a top data security provider in Germany and a trusted
information and communication technology expert worldwide,
T-Systems is always coming up with innovations, products and moves
for customer satisfaction. In March 2005, the company released its
new Digital Cinema Global Network. This is a European-wide
satellite network that allows a movie to be transmitted to a
theater at the mere push of a button.
T-Systems is in a unique position as a consulting firm, that it
is able to create customer demand. Through its connection to
Deutsche Telekom, the firm invests heavily in R&D, developing
products that would become integral part of future business.
It was also in 2005 when Deutsche Telekom restructured T-Systems
into two distinct divisions: T-Services Business Services, which
focuses on medium- and large-sized companies; and T-Systems
Enterprise Services, which is dedicated to serving multinational
corporations and large government projects. There are very
few industries in which T-Systems does not compete.
Aerospace, defense, travel, education, broadcasting, chemicals,
health care, banking and the retail sector are just a sampling of
some of the sectors in which T-Systems specializes.
In September 2006, T-systems finished its work on a new payment
system for the Hanover Scorpions of the German Hockey League.
In the same month, T-Systems rolled out a prototype of a new
highway toll program in cooperation with the German Transportation
Department and the European Union. In February 2006,
T-Systems signed with the FIFA World Cup organizing committee in
Germany to plan, set up and operate a digital radio network for all
12 FIFA stadiums involved in the July 2006 World Cup.
T-Systems made an important move in April 2006 when it
purchased gedas AG, a Germany-based IT services provider.
Gedas was a subsidiary of Volkswagen and specialized in IT for the
automotive industry. Gedas had made inroads in several
markets in which T-Systems has been historically weak, most notably
in China and the Americas. In addition, T-Systems is hoping
to use gedas' connections in the automotive industry to establish
itself in that marketplace. The firm also hopes to bolster
its standing in the increasingly competitive IT outsourcing market,
and has already agreed to a $3 billion IT service contract with the
Volkswagen Group in an effort to capitalize on gedas' strong
network of customers throughout Europe, North America, Latin
America and Asia.
Realignments and new deals
But not all of T-Systems' news is growth and good times. In its
realignments, the firm has divested itself of regions it no longer
finds worthy of its focus. In May 2006 the firm sold its
operations in Denmark and Sweden to ST Denmark AS. Then, in
September 2006, the firm sold all of its business in Turkey to
S&T Systems Integration & Technology Distribution.
And these sales have been accompanied by Deutsche Telekom-wide
domestic layoffs brought on by increased competition, especially
within the fixed network and broadband sectors in Germany. In
2006, the firm upped its layoff count from 5,500 to 6,700, but then
gave German workers a 3 percent raise and a small cash bonus.
T-Systems opened its first office in mainland China in Beijing
in April 2006 although it had an office in Hong Kong since
2002. In October 2006, T-Systems opened an office in
Blumenau, Brazil, which will manage the region's software off
shoring engagements. In 2008, the company concluded a
partnership with U.S. ICT provider Cognizant, in the area of
systems integration. Because of this collaboration, 16 joint
deals were secured resulting in total revenue of €70 million and
€121 million worth of new orders. Significant contracts were
entered into by T-Systems in 2009, such as those with utility
company Eskom and transport company Transnet in South Africa.
As part of the deal, T-Systems also took over ICT service provider
Arivia. Other huge deals that were sealed were with the Dutch
electronics company Philips and the British energy group BP.
In 2010, T-Systems' various transactions included the
introduction of "Run SAP" worldwide. Under this March 2010 global
partnership with Germany-headquartered SAP AG, T-Systems will
deliver worldwide services and develop mobile solutions for SAP
applications. In the same year, MAN and T-Systems, also inked
a three-year contract in which the two companies will work jointly
on enhancing the telematic applications of the utility vehicles