Deutsche Telekom takes back some of T-Systems' operations as part of re-org

T-Systems CEO Adel Al-Saleh plans to implement a new business strategy in the second quarter of 2020. (T-Systems)

To right the ship at struggling T-Systems, Deutsche Telecom is taking back responsibility for corporate telecom clients as part of a restructuring plan for T-Systems.

T-Systems CEO Adel Al-Saleh, who joined the company in January, informed his staff on Wednesday that the business would be "an integrated end-to-end IT player," according to a story by Reuters.

Frankfurt, Germany-based T-Systems was founded in 2000 as a subsidiary of Deutche Telekom. The revamped T-Systems will focus on IT and digital services going forward, according to Reuters.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Al-Saleh has already worked to reduce T-System's German headcount by 5,600 employees, while also closing most local offices. To reduce its cost and better enable its customers' digital transformations, T-Systems is hiring 3,000 offshore employees to bolster its software skills, according to Reuters.

RELATED: DT's T-Systems connects public cloud with supercomputing service

Al-Saleh plans to implement his new plan, which could also include some T-Systems employees moving to Deutshe Telekom subsidiary Telekom Deutschland, in the second quarter of this year.

Al-Saleh's vision for T-Systems includes making it more of a German-centric player offering a portfolio of services to multinational companies such as automaker Daimler, Reuters said.

In order to sharpen its focus, T-Systems is slowing down its classical IT outsourcing services, such as remote desktop access. Al-Saleh said he was open to offers for those parts of T-Systems business, according to Reuters.

Suggested Articles

The personal information of hundreds of thousands of CenturyLink customers was exposed online via an open database that has since been closed.

The number of hyperscale data centers hit a new high-water mark in the third quarter, according to Synergy Research Group.

Comcast Business has extended its broadband and network management capabilities into parts of Canada via a partnership with iTel Networks.