CeBIT: T-Systems signs integration deal with Cognizant

T-Systems, the German-owned IT services provider has announced at CeBIT that it is transferring its Indian offshore operation to systems integration specialist Cognizant as part of a new partnership deal..

T-Systems India, which has about 1,150 staff, will be absorbed by Cognizant, subject to regulatory clearance.

"Today is a good day for Deutsche Telekom and T-Systems," Deutsche Telekom chief executive Rene Obermann said, adding that "Cognizant is a perfect strategic fit".

Deutsche Telekom has been sounding out options for the business client unit, with around 56,000 staff, for almost a year in an effort to help it expand internationally and catch up with rivals such as Cap Gemini and Atos Origin.

The business provides IT and telecoms services for companies such as carmakers BMW, Daimler and Volkswagen as well as for German federal and municipal governments and European public administrations.

Last March, Deutsche Telekom said it was looking for an international company to buy into T-Systems but in the course of the year said it was seeking a partner only for the systems integration part of the business.

"The best part about today is that speculation is over," said T-Systems chief executive Reinhard Clemens, who took over at the helm in December last year.

The announcement comes a year after T-Systems announced plans for a significant move into the UK.

In 2007, T-Systems reported a 17.7 percent decline in adjusted core profit to €1.1 billion (£842 million) and a 6.9 per cent drop in revenue to €12 billion (£9.19 billion).

Email to a friend

Print this page

Social Bookmark this article: What is this?

Digg

Delicious

Reddit

StumbleUpon

Slashdot

Google

Facebook