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Deutsche Telekom official eyes IT market growth

Business Materials 17 February 2008 01:47 (UTC +04:00)

( Reuters ) - Deutsche Telekom aims for its corporate IT services revenue to grow 4 percent faster than the underlying market, a senior company official said in an interview on Saturday.

Reinhard Clemens, head of the German telephone company's T-Systems division, which serves large and medium-sized clients, told German newspaper Die Welt that IT growth and job cuts were the way forward to rebuild profitability.

"We have got to grow in the IT sector, ideally 4 percent faster than the market," he said.

T-Systems aimed to double its share of its 29 top customers' IT spending to 14 percent from 7 percent now, but job cuts would also be needed, Clemens said.

"First of all there is a need to reshape our sales team for medium-sized businesses. Also we can and must drastically tighten the screws on costs in the delivery units. As for production, lots can still be automated," he said.

Deutsche Telekom had not yet decided whether to sell a systems integration unit with 8,000 staff or turn it into a joint venture, Clemens said, adding that his general preference was not to sell parts of the company.

Reuters reported in late January that India's Tata Consultancy Services was a possible partner for the unit.

Deutsche Telekom used to be Germany's state telecoms monopoly and high staffing costs have caused it to struggle against some newer competitors in recent years.

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