T-Systems to operate data and output-management centers for WestLB

The Deutsche Telekom subsidiary won the contract despite bids from major competitors. According to Klaus Michael Geiger, COO and board member at WestLB, T-Systems’ stood out through its highly professional attitude, flexible approach, in-depth industry knowledge and proven ability in the operation of banking systems, as well as by their efficiency and excellent value for money.“

Choosing T-Systems as an outsourcing partner allows the bank to achieve several objectives. Not only can it minimize risk relating to capacity issues, it can also exploit economies of scale to reduce costs. Moreover, clearly defined SLAs should lead to tangible improvements in quality of service.

“Partnership with WestLB AG, one of Germany’s leading banks, underlines our expertise and experience in the financial services segment,” commented T-Systems CEO Konrad F. Reiss. “We are constantly improving our performance and efficiency, and we are able to pass on the economic benefits to our customers.”

Major banks looking to outsource their IT
According to management consultancy Mummert+Partner, more and more banks intend to outsource their IT environments. So far, few of the major players have taken this step, but this looks likely to change, as 52 percent of German bank executives believe that IT costs are excessive. This view is confirmed by other market analysts, such as Pierre Audoin Consultants (PAC): “Outsourcing will continue to drive growth in the German IT sector.” This will be particularly true for the financial services segment, where PAC forecasts an annual 13 percent rise in software and IT services spending over the next few years, reaching €7.19 billion in 2005.

WestLB AG
With assets exceeding 260 billion euros, WestLB AG is not only one of Germany’s leading banks, it is a major global player, with representatives, branches and subsidiaries in the world’s most important financial markets. It is a wholly owned subsidiary of the publicly owned Landesbank Nordrhein-Westfalen. This is in turn is controlled by the State of North Rhine-Westphalia (43.2 percent), the Rhineland and Westphalia-Lippe Savings Banks Associations (16.7 percent each) and the Rhineland and Westphalia Regions (11.7 percent each).

T-Systems
T-Systems is one of Europe’s leading providers of information and communications technology (ICT). Within the Deutsche Telekom group, T-Systems is responsible for serving major business accounts. The company has some 42,000 staff on its payrolls in more than 20 countries. In 2002, the solutions provider generated 10.5 billion euros(1) in sales.

Project experience in the financial services segment
T-Systems develops and implements ICT solutions at a range of major banks in Germany and beyond. It also operates IT and network infrastructures, such as the data center it runs in Frankfurt for Eurohypo AG, an institution jointly owned by financial giants including Dresdner Bank, Deutsche Bank and Commerzbank. At Schufa Holding AG, T-Systems’ tasks include the operation of an in-house developed application used to provide information on creditworthiness. In Italy, the largest banking group, Intesa BCI, entrusts the ICT provider with its data centers and 10,000 PC desktops. For la Caixa, a leading Spanish savings bank, T-Systems provides desktop services for around 30,000 users, as well as operating local area networks at the headquarters and 4,500 branches.

For more information about the company and its services, see www.t-systems.com.

Contact:
T-Systems International GmbH
Press and Media Relations
Phone: +49 (0) 69 665 31-126
Fax: +49 (0) 69 665 31-139
E-mail: presse@t-systems.com

(1) T-Systems' 2002 German GAAP total revenues of €11.3 billion as adjusted to the new accounting treatment of its agency business implemented on January 1, 2003. The adjustment reduces T-Systems' net revenue by approximately € 820 million. For further information, please refer to "Reconciliation to new structures" on p. 42 in Deutsche Telekom's 2003 First Quarter Report