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.

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.

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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.