T-Systems wins megadeal with Centrica in UK
T-Systems announced yesterday that it has signed a 10-year IT infrastructure outsourcing contract with UK energy company Centrica. As part of the deal, T-Systems will acquire two datacentres and will take over 230 staff.

OVUM. Katharina Grimme

Comment:

The value of the deal has not been published but we estimate it to be in the €600-€900 million range - clearly a major coup for T-Systems that has not won many large deals in the past year. In fact, it is the largest contract that T-Systems has ever signed with a new client and is the largest ever signed deal outside of its German home market.

T-Systems won this deal against Fujitsu Services in the final bidding round. A Centrica spokesperson says that the key factors in choosing T-Systems were its attractive commercial package, its proven operational capabilities and its willingness to take staff on.

T-Systems will assume responsibility for part of Centrica's IT infrastructure, including data centre operations and desktop support services for more than 23,000 users. With the assets and staff acquired as part of the deal, T-Systems will be able to further build out its position in the UK. As part of its ambitious internationalisation strategy, which sets out to raise non-German revenue share from a current 15% to 30% by 2010 and to achieve leadership positions in selected Western European markets; it is aiming for a number five rank in the UK by 2010.

Together with the pilot project for the UK census (won in late 2006), gedas activities (which are now fully integrated into T-Systems) as well as existing operations of T-Systems in the UK (e.g. for Airbus, DaimlerChrysler and T-Mobile), the company is making progress in penetrating this large and mature market.

We hope to provide more information on actual revenue numbers for the UK following the announcement of the FY 2006 results tomorrow.