Tuesday, December 1st, 2020
Home »Telecommunication » World » Deutsche Telekom to take on telecom ops from slimmed-down T-Systems
Deutsche Telekom is taking back responsibility for corporate telecoms clients from its restructured T-Systems unit, which will emerge as a slimmed-down operation focused on IT and digital services.

Adel Al-Saleh, hired at the start of 2018 to staunch losses at T-Systems, told staff on Wednesday that the business would in future be "an integrated end-to-end IT player and reliable enabler for our clients' digitization".

American Al-Saleh, who gave himself two years to get the job done, has already acted to reduce T-Systems' German headcount by 5,600, close most local offices and hire 3,000 offshore staff to round out its software skills.

"We plough on," Al-Saleh told a briefing in Bonn, when asked what stage his restructuring drive had reached.

"We now have a portfolio that is fit for the marketplace - and the marketplace is changing dramatically," he added. "In reality, your transformation never stops."

The reshuffle at Europe's largest telecoms group will leave T-Systems with top-line revenues of 4 billion euros ($4.4 billion) - down from nearly 7 billion euros last year. Around 30,000 employees will serve 1,000 clients.

Several European telecoms have found themselves saddled with IT operations poorly placed to compete against more dynamic pure-play rivals. T-Systems has also struggled with the legacy of loss-making IT contracts struck by past management.

Al-Saleh is positioning T-Systems as a German-centric player offering a portfolio of services, with an emphasis on multinational companies like auto maker Daimler that generate the lion's share of its revenues.

Its operations span areas including the industrial internet, cyber-security, road charging and a practice that manages business applications offered by SAP.

Copyright Reuters, 2019


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