FRANKFURT/MAIN, Germany and TEANECK, New Jersey, March 5 /PRNewswire/ --
- T-Systems and Cognizant join forces to vigorously expand their businesses
Deutsche Telekom's enterprise customer division, T-Systems, and global IT services provider, Cognizant (Nasdaq: CTSH), today announced that they have entered into a truly global Systems Integration alliance. The alliance is primarily aimed at catering to European corporations with global delivery requirements for system integration services. This unique partnership -- between a global delivery IT powerhouse and a European giant -- will enable customers to leverage the benefits of global delivery.
The partnership combines the onsite and offshore expertise of T-Systems and Cognizant across industry segments with an enhanced geographical footprint, a broader range of service offerings, and greater access to the best global talent. The new alliance will draw upon a combined talent base of over 110,000 employees worldwide, comprising more than 40,000 employees working offshore. Expanded operations in key geographies -- Europe, Americas and Asia -- are expected to significantly augment the growth of the two companies. As part of the new business partnership, T-Systems India and its approximately 1150 employees will be transferred to Cognizant, subject to appropriate regulatory clearance.
By harnessing the onsite, near-shore and offshore strengths of T-Systems and Cognizant, the partnership will facilitate the adoption of a global services delivery model in and beyond Europe that will enable the customers to save costs through labor arbitrage and drive business transformation and innovation through a powerful front-end deeply rooted in the local business environment. The two companies will provide customers with the synergy of local business power-business culture, language capabilities and operating philosophy-and global resources.
"This new alliance will make global delivery a reality in Europe. Strategically we are the first to give our customers unprecedented access to a new service and delivery model," stated Reinhard Clemens, management board member for business customers at Deutsche Telekom and CEO of T-Systems. So far, either Western competition has tried to integrate acquired tier-2 offshore workforces, or Indian vendors have struggled to enter the new markets of Continental Europe. Says Clemens: "Our new alliance will open up new opportunities, add significantly to T-Systems' profitability, and give both partners a stronger footing in key vertical industries. It will also bring together great talent from Cognizant and T-Systems -- allowing our systems integration business to be more vigorous in their expansion plans."
"In partnership we can deliver truly unique global IT services, bringing together our complementary strengths with the goal of dramatically increasing the value provided to customers," said Francisco D'Souza, President and CEO of Cognizant. "Both Cognizant and T-Systems have a long heritage of partnering with clients, and our joint capabilities will deliver a powerful combination of scale and agility in the key markets serviced by both companies. We also look forward to welcoming the T-Systems employees in India to the Cognizant family. We believe that this alliance will provide our joint customers with a world-class combination of deep local knowledge and market-leading global delivery platform."
T-Systems has a strong position in the European market for ICT services, in particular in infrastructure services (like data center and desktop outsourcing, global voice, data and IP services) as well as in application development, application management and system integration services. It is T-Systems vision to seamlessly integrate IT and telecommunications services for connected life and work. With more than 56,000 employees and 12 billion Euro revenues in 2007, T-Systems is the undisputed IT services leader in Germany, Europe's largest economy, and number two in Europe. It has a strong customer base in the global automotive industry centered around large OEM key customers, as well as in EU public sectors and manufacturing industries.
Cognizant (Nasdaq: CTSH) is a leading provider of information technology, consulting and business process outsourcing services. Cognizant's single-minded passion is to dedicate our global technology and innovation know-how, our industry expertise and worldwide resources to working together with clients to make their businesses stronger. With more than 35 global delivery centers and over 55,000 employees as of December 31, 2007, we combine a unique onsite/offshore delivery model infused by a distinct culture of customer satisfaction. A member of the NASDAQ-100 Index and S&P 500 Index, Cognizant is a Forbes Global 2000 company and is ranked among the top information technology companies in BusinessWeek's Info Tech 100, Hot Growth and Top 50 Performers listings. Visit us online at www.cognizant.com.
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed in our most recent Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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