New major ICT deal with Shell

T-Systems has struck oil in its effort to become the leading network-centric information and communications technology provider to corporate Europe. In a one billion euro mega-deal, T-Systems will now provide Royal Dutch Shell with global hosting and storage services.

Deutsche Telekom’s enterprise customer unit, T-Systems, and multinational oil group Shell today announced the agreement, which is part of a broader project that will help Shell deliver significant cost savings over five years. The deal has T-Systems taking over the infrastructure and IT professionals of Shell’s global data centers, including three in the Netherlands and one each in the U.S. and Malaysia.

The initial five-year agreement also calls for the migration of the majority of Shell’s SAP services to T-Systems’ Dynamic Services platform in Munich. This unique solution dynamically adapts ICT capacities like bandwidth and data storage to customers’ business processes, boosting efficiency and reducing costs.

Contracts, commitment and confidence

“Our commitment to Shell’s global IT needs awarded us with the largest contract in today’s market. We are making good on a promise to grow our international business while winning the confidence of Europe’s largest corporation”, says Reinhard Clemens, member of Deutsche Telekom’s Board of Management and T Systems’ CEO. “We will serve Shell in over 100 countries This is truly global delivery.”

The agreement validates both T-Systems’ focus on network-centric ICT solutions and its commitment to expand in markets outside of Germany. Proving its dedication to Shell’s global delivery needs, T Systems will move its U.S. headquarters to Houston. It will also make Malaysia a center for service management and turn the local data center into its Asian hub.

Due to the size of the deal and the global nature of the business, Shell will become one of the three key T-Systems customers. The energy and petrochemical corporation will benefit from a dedicated global delivery team.

New partner, new employees

T-Systems also expects to welcome approximately 900 highly skilled Shell specialists into its ranks, expanding its international workforce as all people in scope are based outside Germany.

The contract will boost business for T-Systems in the Netherlands, where the core account management will be based. This agreement is one of several recent major IT outsourcing wins for the company. Amongst others, T Systems took over responsibility for parts of the IT infrastructure for Centrica, a British integrated energy company.