Feeds

Siemens outsources IT - to itself

ATOS Origin tie-up mooted

  • alert
  • submit to reddit

Boost IT visibility and business value

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

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.