FRANKFURT, April 16 (Reuters) - T-Systems, the IT services arm of Germany’s Deutsche Telekom, has secured a long-term contract with the Sparda banking group, marking an important win for new Chief Executive Adel Al Saleh.
Sparda signed a seven-year outsourcing deal worth hundreds of millions of euros, with a three-year option to extend it, in which its entire IT infrastructure would be migrated to secure T-Systems servers, Deutsche Telekom said in a statement.
“We must constantly boost our efficiency, reduce costs and at the same time drive innovation,” Burkhard Kintscher, head of Sparda’s central IT services division, said in the statement.
Kintscher added that Sparda expected to save hundreds of millions of euros through the deal. About 120 jobs would migrate to T-Systems, Deutsche Telekom said.
Al Saleh, who took the helm at T-Systems at the start of the year, told Reuters last month he had 12 to 24 months to turn around the business that has long acted as a drag on the performance of Europe’s largest telecoms company. (Reporting by Douglas Busvine Editing by Edmund Blair)