T-Systems, Cognizant Team Up

FRANKFURT, Germany and TEANECK, N.J. -- Deutsche Telekom’s enterprise customer division, T-Systems, and global IT services provider, Cognizant (NASDAQ: CTSH), today announced that they have entered into a truly global Systems Integration alliance. The alliance is primarily aimed at catering to European corporations with global delivery requirements for system integration services. This unique partnership – between a global delivery IT powerhouse and a European giant – will enable customers to leverage the benefits of global delivery.

The partnership combines the onsite and offshore expertise of T-Systems and Cognizant across industry segments with an enhanced geographical footprint, a broader range of service offerings, and greater access to the best global talent. The new alliance will draw upon a combined talent base of over 110,000 employees worldwide, comprising more than 40,000 employees working offshore. Expanded operations in key geographies – Europe, Americas and Asia – are expected to significantly augment the growth of the two companies. As part of the new business partnership, T-Systems India and its approximately 1150 employees will be transferred to Cognizant, subject to appropriate regulatory clearance.

By harnessing the onsite, near-shore and offshore strengths of T-Systems and Cognizant, the partnership will facilitate the adoption of a global services delivery model in and beyond Europe that will enable the customers to save costs through labor arbitrage and drive business transformation and innovation through a powerful front-end deeply rooted in the local business environment. The two companies will provide customers with the synergy of local business power – business culture, language capabilities and operating philosophy – and global resources.

“This new alliance will make global delivery a reality in Europe. Strategically we are the first to give our customers unprecedented access to a new service and delivery model.” stated Reinhard Clemens, management board member for business customers at Deutsche Telekom and CEO of T-Systems. So far, either Western competition has tried to integrate acquired tier-2 offshore workforces, or Indian vendors have struggled to enter the new markets of Continental Europe. Says Clemens: “Our new alliance will open up new opportunities, add significantly to T-Systems’ profitability, and give both partners a stronger footing in key vertical industries. It will also bring together great talent from Cognizant and T-Systems – allowing our systems integration business to be more vigorous in their expansion plans.”

Deutsche Telekom AG (NYSE: DT)