The Channel logo

News

By | Joe Fay 4th March 2005 16:27

Siemens outsources IT - to itself

ATOS Origin tie-up mooted

Siemens has handed over responsibility for its entire IT infrastructure to its struggling Siemens Business Services arm.

Under a three year plan, Siemens plans to save “hundreds of millions of euros” by handing the operation of all its units’ and regions’ IT infrastructure to SBS. At the same time, the firm said, SBS will benefit from additional business worth “several hundred millions of euros annually”.

The announcement came as Siemens announced it had sold its Germany-based hardware services operation, Sinitec, to maintenance operation a&o. At the same time press reports suggested Siemens was in discussions to merge SBS with fellow European services group, Atos Origin.

Offloading the maintenance arm while handing SBS work worth hundreds of millions of euros would be one way for Siemens to make SBS more attractive to any potential suitors.

The massive German engineering firm said it had already been working to harmonize IT platforms companywide, and said handing over its IT operation to SBS would allow the IT operation to be organized and operated under a shared services approach.

At the same time Siemens has given a massive boost to its loss-making services unit. SBS reported a loss of €25m in its first fiscal quarter of 2005, on sales of €1.3bn. New orders were €1.9bn. The company put the loss down to an unfavourable revenue mix.

A Siemens Business Services was said the company did not comment on rumours, but said the deal with its parenting company was a "forward looking strategy".

Related stories

BBC Tech staff become Siemens workers
National Savings jobs to India to cost UK £25m, says union
Siemens faces outsource protest strike
Atos Origin: resilient under pressure

alert Send corrections

Opinion

Andrew Cobley

If only lawyers could make money rather than costing money
Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Wind turbine, image via Shutterstock
Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock