T-Systems

Performance Indicators

2015-2017: forecast

The T-Systems affiliated enterprise providing services of system integration, development of software applications and outsourcing concentrates on cloud solutions. Experts predict annual average growth rate of the European cloud market for 17% till 2017 that is much higher than annual growth by 2% in the field of traditional information and communication technologies. Increase in profitability of T-Systems plans due to concentration in the growing markets and standardization improvements. By 2015 growth of profitability of this division on EBIT up to 4% is expected.

2013

Profit before interest contribution, taxes and depreciation charges for complete year grew in comparison with 2012 by 14 percent - to 390 million euros. In general total sales in 2013 decreased by 5.2 percent - to 9.5 billion euros. Generally this decrease is connected with "effect of high base" 2013 – all 2013 the company received payments according to the large contract with the Shell oil company which was signed in December, 2012.

Despite this growth, lag on profitability in comparison with level on the industry which should be liquidated in the future remains. For this purpose the T-Systems company in January submitted extensive plans for change of model of business. The current business model will be changed for the purpose of development of the sphere of cloud computing on an equal basis with usual IT technologies and telecommunication services. Demand is predicted in two main directions: virtual platforms and cloud services and also classical IT technologies and telecommunication services.

2012

Order amount of T-Systems was 8.7 billion euros that is about 18% higher than results of 2011. The volume of total sales of the company increased by 0.6% and was 10 billion euros for the income account from the international business of the company. Its volume grew by 6% to 3.2 billion euros in comparison with 2011. Within a year the indicator of the corrected profitability grew, in the fourth quarter 2012 its value was already 2.4%.

Positive rates of development managed to be reached thanks to signing of large contracts with the Shell oil company and state orders in Germany. The five-year contract with Shell will help to strengthen T-Systems positions in strategically important market of cloud computing. T-Systems continues to try to obtain considerable achievements in area of intelligent networks: in 2012 the company signed the large contract with network of Presbyterian medical institutions of the USA. In addition to cloud services joint development of new software applications in the field of medicine is provided in the contract. In the growing sector of "network cars" the company cooperates with Daimler AG concern. Development of communication infrastructure for the multimedia Command Online system of the Mercedes-Benz cars began. A new system will supply drivers and passengers with instruments of navigation and informing on a situation on the road in real time, access to social networks will provide mobile communication and Internet entertainments, for example.

2010

Total sales grew by 2.9% in comparison with previous year to 9.1 billion euros in 2010. Internal income of all concern decreased by 2.5% to 2.6 billion euros. T-Systems plays a key role in cost optimization on IT, as service provider for Deutsche Telekom Group. Decrease in internal income of Deutsche Telekom due to increase in external profit by 5.4% in a year was succeeded to compensate T-Systems companies.

In 2010 the indicator of EBIT grew more than by 45% in comparison with 2009. This success is achieved mainly at the expense of the program of "Economy for the purpose of increase in effectiveness of services" and the optimized use of assets.

The yield ratio of EBIT made 3.7% for all year. The corrected indicator of EBITDA increased to 948 million euros in 2010, with overweight in 10.5%.

Business in Russia

Основная статья: T-Systems CIS

In Russia the representative office is open in 1995.

History

2011

Forrester Research conducted a research of suppliers of SAP services on the basis of 65 criteria. According to the results of a research the T-Systems company won first place. The market of SAP services constantly grows. It not only growth of business due to acquisitions and consolidations, but also new models of providing the services and also the extending range of services offered the customer. Three directions of development create the market of SAP services today: cloud computing, payment on the basis of the actual use and nonlinear models of service. T-Systems could not only hold the positions, but to be the driving force of innovations with the offer of "Dynamic SAP services". Exactly thanks to this solution, you can find the company on the leading position in the last research of Forrester Research on a subject: "Suppliers of SAP services". The Forrester Research was concluded that T-Systems is a serious alternative for the European companies, especially if they look for the supplier having serious experience as in implementation of implementations, and further management and upgrade of the SAP applications. T-Systems is one of the few companies whose advantage is professional approach to implementations which is confirmed with the certificate of global hosting provider SAP. In the report of Forrester Research analyzed each service provider on the basis of 65 criteria in three segments. In category "Current Offers", the possibility of providing a full range of services from one supplier - from consulting to a hosting became the key moment of assessment among other features. An appreciation was sent to categories "Strategy" to suppliers who offer the innovation pricing models or works in close partnership with SAP, including joint development. At last, global presence in the market and expansion of SAP services became the final factor solving for benefit of T-Systems.

2012: Expansion to Asia

T-Systems is going to implement large-scale strategy for expansion on the Asian market. At the moment T-Systems revenue from transactions in the Pacific Rim makes only 5% of total sales of the company, the next purpose consists in doubling of this proportion and also in trebling of a share in the markets of such countries as Singapore, Malaysia, Philippines, Japan and China by 2015.

To implementation of this plan of T-Systems she intends to attract six new clients every quarter, 2013. Provins Praveen Kumar, the vice president of T-Systems for sales in this region, told about crucial elements of new strategy of the company.

In India where at the moment T-Systems has only one office, in the city of Pune which state makes 20 people and which services the only client, in the next three years the company will create the large-scale center for delivery of services. However at the first stage the main focus will be made on activation in the markets of China, Singapore, Philippines and Indonesia.

Already now T-Systems works in China rather tensely, this focus will be strengthened. Until the Chinese offices of the company are located in the cities of Pyongyang, Wuhan and Shanghai, they provides services of system integration, support, cloud, including infrastructure services. Also T-Systems has three DPCs in China. As for the vertical markets, T-Systems already has the developed examination in the field of transport and logistics, she intends to approve also the positions in a segment of IT services for the airports by 2014.

One more basic area of interests – health care. In this industry of a position of T-Systems are historically strong in Singapore, Malaysia and Indonesia. In particular, in this area examination of the company is concentrated on SAP solutions, and she intends to be fixed in this segment in the markets of Malaysia, Indonesia and China by 2014.

To important activities for T-Systems there will be providing cloud services. By this moment it implemented one of the world's largest cloud projects in the field of joint work (150 thousand places, Shell) and also the large project on migration from the Lotus Domino platform on Office 365 (200 thousand jobs).

According to analysts of PAC, plans of T-Systems concerning business development in the Pacific Rim are rather ambitious. To be fixed it is necessary to reflect competitive blow from the Indian low-cost of service providers in the market of the region T-Systems, including TCS, Infosys, Wipro, HCL and Mahindra Satyam-Tech Mahindra. You should not dismiss also the leading service providers like IBM, Accenture and Capgemini. It is obvious that T-Systems should choose a certain intermediate strategy to attract potential clients.