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T-Systems

T-Systems is a leading European provider of digital services and IT solutions, operating as a wholly owned subsidiary of AG and specializing in end-to-end for businesses, industries, and the . Founded on October 1, 2000, the company emerged from the consolidation of 's IT operations and has since evolved into a key architect of digital ecosystems, with a focus on , (AI), cybersecurity, connectivity, and consulting services tailored to sectors such as automotive, healthcare, , and . With headquarters in , , T-Systems employs over 26,000 professionals worldwide, including more than 20,000 certified experts, and maintains operations across 26 countries supported by four strategic delivery centers in , , , and . In , the company reported annual revenues of approximately €4.0 billion, reflecting its role in driving Deutsche Telekom's broader B2B digital strategy amid a global emphasis on and sustainable IT practices. T-Systems emphasizes a "Zero Outage" framework to ensure high reliability and , while partnering with technology leaders like for initiatives such as RISE with SAP to accelerate cloud migrations and integrations. The company's strategic priorities include enhancing efficiency, , and —achieving 100% renewable usage—and leading in industry-specific innovations, such as managing spaces in the automotive sector through ecosystems like Catena-X. Recognized by analysts for excellence in areas like autonomous systems, software-defined vehicles, and transformation consulting, T-Systems continues to position itself as a trusted partner for sovereign, scalable infrastructures in an increasingly connected world.

Overview

Company Profile

T-Systems International is a leading European provider of digital services, founded on October 1, 2000, through the merger of 's IT divisions and a majority stake in debis Systemhaus, creating Germany's largest manufacturer-independent IT service provider at the time. Headquartered in Frankfurt am Main, , the company operates as a of and focuses primarily on IT services, consulting, telecommunications infrastructure, and digital solutions tailored for enterprises across various industries. With approximately 26,000 employees worldwide as of December 31, 2024, T-Systems supports global operations in 27 countries, emphasizing secure and efficient digital ecosystems. Its core mission centers on enabling for businesses by leveraging technologies such as , , cybersecurity, and to deliver innovative, reliable outcomes. This approach integrates consulting, implementation, and ongoing operations to help organizations achieve , , and competitiveness in their digital environments. T-Systems serves a diverse portfolio of notable clients, including major enterprises like Daimler, , and , which have relied on its expertise for and digital projects since the early . It has also established long-standing partnerships with technology leaders such as , AWS, , and , initially formed in the early to enhance multi-cloud capabilities and enterprise solutions. These collaborations underscore T-Systems' role in fostering industry-specific innovations while maintaining a commitment to and across markets.

Ownership and Scale

T-Systems operates as a wholly owned subsidiary of AG, having been established in 2000 as part of the parent company's strategy to consolidate its IT services capabilities. This full ownership structure has remained unchanged since its inception, ensuring alignment with Deutsche Telekom's overarching corporate objectives in and digital services. In terms of , T-Systems is fully integrated into Deutsche Telekom's Systems Solutions operating segment, which encompasses Group IT and digital services activities. This integration facilitates coordinated decision-making and resource allocation, with T-Systems' management board reporting directly to Deutsche Telekom's executive leadership, including CEO . The structure emphasizes strategic focus on high-growth areas such as and , while adhering to Deutsche Telekom's principles of transparency and compliance. Quantitatively, T-Systems generated €3.9 billion in in 2023, following €4.2 billion in 2020, with restructuring efforts contributing to a temporary dip before recovery to €4.0 billion in 2024 (up 2.8% year-on-year) and continued growth of 3.3% in the first half of 2025. As Germany's largest IT services provider by the Lünendonk and one of Europe's top 10 in terms of as of 2025, the company maintains a strong market position, particularly in the DACH region and broader EMEA markets. T-Systems demonstrates its commitment to innovation through investments in and technologies, including a €1 billion initiative with partners to build an Industrial Cloud. In 2025, the company marked its 25th anniversary, celebrating its transformation from a telecom-focused IT provider to a leader in -driven digital solutions.

History

Formation and Early Development

Following the privatization of Deutsche Telekom in 1996, the company faced increasing demands for advanced IT services to support its transformation from a state monopoly into a competitive international telecommunications provider, prompting the consolidation of internal IT capabilities to meet growing operational needs. T-Systems International GmbH was formally established on October 1, 2000, through the merger of Deutsche Telekom's existing IT subsidiaries—including T-Data, T-Nova, DeTeCSM, and Detecon—with debis Systemhaus, a Daimler-Benz subsidiary in which Deutsche Telekom held a 50.1% stake. This strategic combination created Germany's largest manufacturer-independent IT service provider, headquartered in Frankfurt, with an initial focus on integrating telecommunications and IT infrastructure to serve enterprise clients. In its early years, T-Systems prioritized building scalable IT solutions for the and automotive industries, drawing on debis Systemhaus's expertise in automotive IT and Telekom's network capabilities to deliver such as and . A key milestone came in 2001 with the initiation of a major partnership with DaimlerChrysler, under which T-Systems provided IT support for systems, marking the company's first significant external and solidifying its role in sector-specific digital infrastructure. The nascent company encountered headwinds from the dot-com bust, which contributed to broader economic pressures on , resulting in substantial cost-cutting initiatives from 2002 to 2003, including the elimination of around 15,500 jobs group-wide to address mounting debt and reduced market demand for IT services. These measures helped stabilize operations amid the downturn, allowing T-Systems to refine its cost structures while maintaining focus on core competencies in IT and telecom convergence.

Expansion and Key Milestones

In 2005, T-Systems acquired gedas, the IT subsidiary of the , for approximately €400 million to €450 million, enhancing its expertise in automotive IT services and securing long-term contracts worth €2.5 billion over seven years. Three years later, in 2008, T-Systems formed a global systems integration alliance with Technology Solutions, which included transferring operations of T-Systems and its 1,150 employees to , aimed at jointly providing application management and IT services to customers in , , and . Under the leadership of Reinhard Clemens, who served as CEO from 2007 to 2018, T-Systems emphasized internationalization through strategies like expanding cloud services exports and securing major global contracts, such as with for cloud migration. By 2012, T-Systems reached a peak as Germany's largest IT services provider, employing nearly 53,000 people worldwide and generating significant revenue from operations. Facing profitability challenges, T-Systems announced in 2018 a program to reduce up to 10,000 jobs globally over three years, including 6,000 in , as part of a to achieve €600 million in annual savings and return to profitability. To support cost-efficient operations and growth, T-Systems opened a new delivery center in , , in November 2022, in partnership with , planning to hire over 6,000 employees there within 24 months for digital solutions and cloud services.

Recent Transformations

In the early 2020s, T-Systems underwent significant leadership changes to steer its strategic direction. Adel Al-Saleh served as CEO from January 2018 until the end of 2023, during which he oversaw the company's pivot toward digital services. He was succeeded by Ferri Abolhassan, who assumed the role effective January 1, 2024, bringing expertise in IT transformation to accelerate T-Systems' focus on and solutions. Following the 2018 announcement of a major restructuring program, T-Systems completed the reduction of up to 10,000 positions by 2021, primarily in , to streamline operations and achieve annual savings of approximately €600 million. This initiative marked a deliberate shift from traditional IT to high-value services, including cybersecurity, , and digital consulting, enabling the company to emerge as a more agile provider for enterprise clients. A key highlight in T-Systems' AI strategy came in 2025 with the launch of Germany's first gigafactory, developed in partnership with and . This sovereign industrial cloud, based in and featuring up to 10,000 GPUs, aims to boost Europe's AI computing capacity by 50% and support applications such as and process optimization, with operations slated to begin in 2026. In October 2025, T-Systems expanded its healthcare portfolio through the acquisition of synedra, an Austrian specialist in medical data management software. The deal integrates synedra's communication and solutions, serving over 80 employees and enhancing T-Systems' capabilities in secure digitalization for the healthcare sector across . Sustainability has become integral to T-Systems' operations, aligning with Deutsche Telekom's broader commitment to achieve across its by 2040. The company has invested in green IT data centers powered by and carbon-neutral resources, reducing Scope 1 and 2 emissions to zero by 2025 while promoting energy-efficient technologies for clients. Marking its 25th in 2025, T-Systems reflected on its from a to a leader in sovereign and infrastructure. The milestone underscored partnerships with for AI processors and the establishment of a Chief Officer role, positioning the company as a key enabler of in .

Business Operations

Core Services

T-Systems provides that encompass end-to-end IT operations, including the management of data centers and networks to ensure reliable infrastructure for enterprises. These services involve comprehensive infrastructure oversight, leveraging over 3,000 architects and experts to handle transformation and daily operations across global sites. In cloud solutions, T-Systems specializes in hybrid cloud offerings that integrate major hyperscalers such as AWS, , and Google Cloud with private and hybrid infrastructures. This includes managed cloud services for lifecycle management of applications, featuring tools like Compute Engine for virtual machines, for data handling, and advanced networking capabilities. The company operates one of Europe's largest cloud data centers near , alongside 11 twin-core data centers, supporting multi-cloud strategies for scalability and sovereignty. Cybersecurity services from T-Systems focus on threat detection, , and zero-trust architectures to safeguard enterprise environments. Offerings include Managed Detection and Response for endpoint protection, combining advanced defenses with expert analysis to identify and mitigate risks in . support emphasizes building a strong culture through assessments and automated scanning, while zero-trust models verify devices and users continuously to reduce risks from internal and external threats. These solutions protect both and systems, with top ratings in next-gen /MDR and strategic . Application development services enable custom software tailored to sectors like automotive and , supporting through modernization and integration. For automotive, T-Systems develops solutions such as Catena-X, an ecosystem for secure data sharing across the . In finance, custom applications facilitate process efficiency, fraud detection, and cloud-based via RISE with , balancing compliance with innovation. These efforts include application transformation, 24/7 monitoring, and for complex landscapes. T-Systems employs a service delivery model centered on agile methodologies and practices to enable rapid deployment and continuous improvement. This approach is applied in , such as using live data and Digital Loop for automotive validation, and in SAP landscapes to implement features iteratively. integration supports on platforms like AWS, fostering agile collaboration and automation across teams. For industry-specific solutions, T-Systems delivers telecom BSS/OSS systems to operators, focusing on convergence of operations and business support for efficient . These systems integrate IT and communications technology, leveraging expertise in to support , , and digital processes as part of Deutsche Telekom's ecosystem.

Key Partnerships and Innovations

T-Systems has established strategic collaborations with major technology providers to enhance its cloud and digital transformation offerings. Since the 2010s, the company has partnered with Microsoft to deliver Azure-based cloud solutions, enabling seamless integration for enterprise customers seeking high-performance computing experiences. In 2018, T-Systems became an AWS Managed Services Provider, supporting cloud migration and management services for global clients. Similarly, partnerships with Google Cloud focus on combining T-Systems' infrastructure expertise with Google's AI and analytics tools to drive innovation in data-driven applications. Collaborations with SAP emphasize ERP integrations and cloud transformations, facilitating digital journeys for industries like manufacturing and public sector. In 2024, T-Systems expanded its alliance with , achieving the highest VMware Cloud Service Provider status and introducing white-label solutions to broaden access to VMware's portfolio for resellers and end-users. T-Systems invests in research through its T-Labs innovation center in , a joint initiative with TU Berlin that develops prototypes in and to advance and industrial applications. This facility translates emerging technologies into practical solutions, such as low-latency networks for and smart infrastructure. In 2023, T-Systems acquired GeoMobile, a Dortmund-based software firm specializing in IT platforms for and barrier-free mobility services, enhancing its geospatial capabilities in urban logistics and public transportation. A key 2025 initiative is the AI factory project, developed in partnership with and to create an Industrial AI Cloud in , enabling European manufacturers to develop and deploy models for industrial processes with sovereign data handling. This platform supports AI training and inference for applications like and automation, announced in November 2025 and set to become operational in early 2026. T-Systems maintains an ongoing partnership with , initiated in as a systems integration alliance, which provides joint application management services for multinational clients, including R&D operations in automotive and other sectors.

Global Presence

International Structure

T-Systems maintains a footprint with operations in 26 countries across , the , , and , supported by numerous offices worldwide. This extensive network enables the company to deliver integrated IT services, including , cybersecurity, and solutions, tailored to regional market demands while leveraging centralized expertise. The structure emphasizes scalability and proximity to clients, ensuring efficient service delivery through a combination of local presence and coordination. The organization's regional divisions are centered on , , and (EMEA) as its core operational base, with dedicated hubs in the and to address diverse geographic needs. In EMEA, the majority of activities are concentrated in and surrounding countries, facilitating seamless integration with Deutsche Telekom's infrastructure. The division focuses on North and South American markets, with key sites in the United States, , , and , while the hub supports growth in high-demand areas like , , and through localized innovation and support. T-Systems employs a delivery model incorporating nearshore and centers to provide round-the-clock support and cost-effective operations, supported by four strategic delivery centers in , , , and . Notable examples include facilities in and , , established in partnership with , which handle digital solutions, cloud services, and application management for international clients, enabling 24/7 global coverage. This model optimizes resource allocation by combining onshore expertise with efficiency, particularly for large-scale projects in and IT operations. Compliance with international standards is integral to T-Systems' operations, ensuring data security and regulatory adherence across regions. The company holds ISO 27001 certification for its information security management system, which covers the implementation, monitoring, and optimization of security processes globally. Additionally, T-Systems complies with the General Data Protection Regulation (GDPR) for handling in and adheres to local laws in various jurisdictions, such as through sovereign cloud offerings that prioritize data residency. These measures support trust in cross-border services while mitigating risks associated with multinational data flows. As of 2025, T-Systems' workforce of approximately 26,000 employees is distributed primarily across its key regions, with the majority based in to align with its EMEA core, followed by significant concentrations in and the to support global delivery needs. This distribution reflects the company's emphasis on regional expertise, with specialized teams in offshore centers like contributing to engineering and support roles. Central governance is managed from the headquarters in , , where strategic direction, innovation, and overall policy are overseen by T-Systems International . This central authority ensures unified standards and , while regional units enjoy in sales and client engagement to adapt to local market dynamics and customer preferences.

Major Markets and Subsidiaries

T-Systems maintains a strong presence in as its core market, where the majority of its operations and revenue are concentrated, supporting a wide range of digital services for enterprises and clients. In the United States, T-Systems focuses on contracts, delivering secure IT solutions tailored to government needs through its North American operations. serves as a key delivery hub for global projects, leveraging centers in and to provide scalable IT services and application management. In , T-Systems operates through several subsidiaries that adapt services to regional regulatory and market demands. T-Systems Austria GmbH, based in with additional sites in , , and Premstätten, specializes in IT consulting and solutions for local industries. T-Systems Iberia S.A.U. covers and , with offices in major cities like , , and , offering customized services including connectivity and cybersecurity. Systems Solutions Slovakia s.r.o., located in , functions as a nearshore delivery center supporting and IT operations for European clients. In 2025, T-Systems integrated Synedra IT GmbH into its Austrian operations following 's acquisition, enhancing healthcare IT capabilities with specialized data management solutions for hospitals. To meet compliance requirements, T-Systems provides sovereign offerings that ensure data residency and adherence to regulations like GDPR, enabling secure adoption across the region. In the region, T-Systems tailors connectivity solutions, including 5G-enabled networks, to support enterprise digitalization in dynamic markets. T-Systems India Pvt. Ltd. operates as a primary global delivery center from and , handling application modernization and infrastructure services for international projects. T-Systems Asia Pte. Ltd. in focuses on consulting, , and secure cloud platforms, serving as a hub for regional expansion and customization of solutions for industries like and . Across the , T-Systems emphasizes integrated IT services for business continuity and innovation. T-Systems , headquartered in with an office in , delivers network, cloud, and solutions with a focus on high-security environments for public and private sectors. T-Systems do Brasil Ltda. maintains multiple sites in São Paulo, , and , providing end-to-end digital services including infrastructure management and cybersecurity tailored to Latin American enterprises.

Leadership and Performance

Executive Leadership

Dr. Ferri Abolhassan has served as CEO of T-Systems since January 1, 2024, also holding a position on the Board of Management of parent company AG, where he oversees the corporate customer division. With over 20 years of experience in IT and digital transformation, Abolhassan joined in 2008, initially leading the Systems Integration division at T-Systems before advancing to roles such as Managing Director for Sales & Service, focusing on digital strategy and customer-centric innovation. Under his leadership, T-Systems has prioritized European digital sovereignty, integration, and secure cloud solutions to enhance enterprise competitiveness. Key executives support Abolhassan's vision through specialized roles. Christoph Ahrendt, since March 2016, manages finance, controlling, and group development, playing a central role in ongoing restructuring efforts to improve operational efficiency and financial resilience. Zsuzsanna Friedl serves as Chief HR Officer since January 2024, driving and aligned with Deutsche Telekom's standards. For technology leadership, Dr. Christine Knackfuss-Nikolic, previously CTO since March 2024, now holds the role of Chief Officer as of September 2025, advancing initiatives and data protection strategies; global delivery operations are led by Anant Padmanabhan as Senior Vice President of Global Delivery Centers. The of T-Systems comprises 11 members, consisting of six shareholder representatives primarily from AG—ensuring strategic alignment with the parent company—and five employee representatives, including union and works council delegates. Chaired by Birgit Bohle, Board Member for and Legal Affairs at , the board provides oversight on , , and . Recent transitions include the appointment of Andreas Schlegel as Chief Strategy & Transformation Officer in September 2025, focusing on and evolution, alongside Knackfuss-Nikolic's shift to . Prior to Abolhassan, Adel Al-Saleh served as CEO from 2018 to December 2023, during which T-Systems implemented significant cost-saving measures, including workforce reductions of approximately 10,000 positions to address financial challenges and refocus on core competencies. Post-2024 under Abolhassan, T-Systems' leadership philosophy emphasizes innovation in and technologies alongside , integrating eco-friendly practices into service offerings as part of Deutsche Telekom's broader environmental goals, such as reducing carbon emissions through efficient IT infrastructures.

Financial and Organizational Metrics

T-Systems experienced fluctuating trends in recent years, starting at EUR 4.2 billion in 2020 before declining to EUR 3.9 billion in 2023 amid market challenges and restructuring efforts. As of Q3 2025, for the first nine months reached €3.014 billion, with Q3 at €1.014 billion (up 2.3% year-over-year), and full-year expectations around €4.0 billion driven by growth in AI-driven services and demand. Order entry in Q3 2025 grew by 3.7% to €4.2 billion, reflecting continued momentum. Profitability has shown steady improvement post-restructuring, with the adjusted EBITDA AL margin rising from 6.2% in 2018 to 8.2% in 2023, reflecting enhanced and cost controls. The cost structure at T-Systems allocates approximately 40% to personnel expenses and 30% to operations, underscoring the labor-intensive nature of IT services. Targeted annual savings of EUR 600 million have been pursued through job cuts initiated in 2018, which aimed at up to 10,000 positions to streamline operations and redirect funds toward growth areas. Organizational health metrics indicate robust , with an internal survey reporting a 75% satisfaction score in 2024; the company emphasizes upskilling programs to prepare staff for digital roles in and technologies. Investment allocation prioritizes innovation, with 15% of revenue directed toward R&D, particularly in and to support long-term growth. Key risks include vulnerability to economic downturns in the automotive sector, which accounts for about 20% of T-Systems' , given ongoing industry transitions to electric vehicles and disruptions.

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