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.

Sponsored by Blue Planet, a division of Ciena

Automation: Take the fast lane on your path to 5G

Automation will play a critical role in helping operators speed the delivery of 5G networks and derive new revenues.

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

HPE announced it's working with Intel and the Linux Foundation on a new open source software project for the roll out of 5G across multiple sites.

Comcast provided an update on Monday in regard to how its network is handling the increased usage and traffic related to the COVID-19 pandemic.

After being a security partner, Palo Alto Networks is now a competitor in the SD-WAN space with its $420 million purchase of CloudGenix.