Spanish national postal service Correos has signed a four-year contract with T-Systems to deploy cloud-based SAP services from T-Systems.

Under the agreement, Deutsche Telekom subsidiary is taking on the hosting, operation and ongoing modernisation of the SAP applications, with the aim of harmonising and consolidating the company systems of Correos.

Correos can keep adjusting its services in line with current business developments by transferring its SAP operations to the Cloud.

T-Systems already has a great deal of experience in the postal sector, with customers such as Deutsche Post DHL, Neopost and Posta Italiana, and extensive SAP expertise and approximately 80% of all SAP transactions are already performed from the cloud.

Correos Systems and Innovation Technology director Juan Jesús Torres Carbonell said that "it is not just about pursuing cost reductions, although this is important, but also about searching for the best quality service offered by companies in the technology sector, which in turn allows for Correos’ resources to focus on driving the business."

T-Systems Spain Public Sector Business and Healthcare head Fernando González-Llana said Correos is a public sector pioneer in its adjustment to the current economic situation.

"Aware of the major budget cuts currently needed and the required competitiveness due to postal market liberalization, they have decided to break away from the typical inertia regarding subcontracting staff in public institutions and turned towards a service delivery model so that austerity criteria can be applied based on pay per use, without neglecting the need to improve service quality," said González-Llana.