AT&T, T-Systems get billion-dollar Shell deals

AT&T and Deutsche Telekom's T-Systems subsidiary have won separate contracts--each worth about $1.6 billion apiece--from Royal Dutch Shell, which is in the process of outsourcing much of its communications and IT needs worldwide to managed services providers. AT&T will manage remote access, VoIP and mobile services, and will work with a supply chain of more than 300 vendors. The telco also will take on about 560 Shell employees in the process. Meanwhile, T-Systems will take over management of Shell's global data centers, along with hosting and storage services, and will take on more than 900 current Shell employees to make it all happen.

As carriers continue to engage in heated battle for managed services contracts, the Shell deals are a big deal for both AT&T and T-Systems, particularly the latter, which had sputtered in recent years.

For more:
- see this report at Light Reading

Related article:
- T-Systems recently found a much-desired partner in Cognizant