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T-Systems and Cognizant enter partnership
2008-03-05
Deutsche Telekom's T-Systems business client unit said it had entered a partnership with IT services provider Cognizant mainly focused on system integration services. As part of the new cooperation, T-Systems India, which has about 1,150 staff, will be transferred to Cognizant, subject to regulatory clearance, T-Systems said on Wednesday at the CeBIT technology trade fair. "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 stock gained 1.16 percent to 12.24 euros by 3:17 a.m. EST, outperforming the DJ Stoxx telecoms index, which was up 0.64 percent. 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. In 2007, T-Systems reported a 17.7 percent decline in adjusted core profit to 1.1 billion euros ($1.67 billion) and a 6.9 percent drop in revenue to 12 billion euros.
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