Analyst Commentary

Traditional IT services challenge T-Systems’ growth despite organizational transformation and portfolio expansion

T-Systems’ revenue continued to decline, down by 8.3% year-to-year in 1Q17

The move of internal IT services delivered by T-Systems’ Telekom IT to a newly created Technology and Innovation Board of Management department alleviated growth pressures in 1Q17; however, T-Systems remained challenged by its high dependency on traditional IT services as well as pricing and competitive pressures in telecommunication and IT services. While T-Systems is pursuing digital transformation opportunities by expanding its next-gener...

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