T-Systems

Deutsche Dynamo

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. 

Going auto

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 manufacturer. 

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T-Systems


701 Warrenville Rd.
Suite 100
Lisle, IL 60532
Phone: (630) 493-6100
Fax: (630) 493-6111
www.t-systemsus.com

STATS


  • Employer Type: Public
  • CEO: Reinhard Clemens
  • 2009 Employees: 46,000

Key Financials

  • 2009 Revenue: $8,800 million

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