Deutsche Telekom Said to Weigh Sale of IT Outsourcing Business
Summary
Stefan Nicola and Manuel Baigorri (Bloomberg) -- Deutsche Telekom AG is considering selling part of its T-Systems unit in a move that could see the German phone company shed a legacy IT business, according to people familiar with the matter. Deutsche Telekom’s management is considering a sale of the outsourcing business of T-Systems’ information technology division, which services computer systems for corporate clients, because of poor operating performance, said the people, who declined to be identified because the discussions are private. See also: T-Systems Raises €100M-Plus to Expand German Data Center Deutsche Telekom Chief Executive Officer Tim Hoettges said this week it “annoys” him that T-Systems failed to report a positive cash contribution, “ruining” its results for 2016. While he praised the T-Systems leadership for cutting costs and introducing new products, “we still have not achieved what we set out to do,” he said Wednesday at the company’s shareholder meeting in Cologne. Deutsche Telekom isn’t the only phone company contending with challenges from big cloud-services providers like Amazon.com and Microsoft Corp. BT Group Plc is restructuring its global services division after a January profit warning that sent the stock reeling.
