The seven-and-a-half-year contract extends an existing deal between the tow companies, and while its value has not been disclosed, T-Systems said it is worth 1bn euros ($1.3bn) more than the original.
T-Systems will continue to manage and streamline T-Mobile’s IT infrastructure across its five main regional operations in Germany, Austria, the Czech Republic, Great Britain, and the Netherlands. The vendor’s remit includes network, database and data center management, and desktop support, while T-Mobile will retain responsibility for application development.
Like many other major IT services vendors, T-Systems is keen to extend its reach in the business process outsourcing space, where it takes on responsibility for handling client’s back office administration tasks, as well as the underlying IT infrastructure.
To this end, T-Systems was keen to flag up that the new deal with T-Mobile will also see it process billing for T-Mobile’s 9 million customers in Austria and the Czech Republic, having already delivered this service in the Netherlands and Germany. The supplier will handle bill printing, envelope stuffing, and mailing.
T-Systems did not disclose the value of the existing deal that the new contract replaces, although it will incorporate a seven-year, 100m-euro ($129m) deal that it signed with T-Mobile’s Czech operation in February 2005.
T-Systems made revenue of 6.16bn euros ($7.9bn) in the first six months of 2006, of which 1.7bn euros ($2.2bn) or 28% came from other companies within the Deutsche Telekom group.
The new deal will be one of T-Systems’ largest contract wins to date. Last year, it won a 2.5bn-euro ($3.2bn) contract with Volkswagen as part of a deal which saw it acquire the client’s internal IT division Gedas, and secured a 1.3bn-euro ($1.7bn) desktop management contract with Deutsche Post in September 2004.
