Feeds

Siemens outsources IT - to itself

ATOS Origin tie-up mooted

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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

Beginner's guide to SSL certificates

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.