Deutsche Telekom’s enterprise arm has won a contract to provide IT outsourcing for a major German bank.

The seven-year contract will see it taking over the IT infrastructure used by Sparda-Banken, migrating all of its mainframes and server landscapes to T-Systems data centres.

T-Systems will also provide network infrastructure, including connecting the bank’s 400 branches across its 12 regions.

It will also provide local networks at Sparda banks in addition to connecting call centres and workstation systems.

In addition, the operator will provide security services, including a central firewall and a real-time threat analysis service, as well as identity and access management and public key infrastructure.           

As part of the deal, T-Systems will take on around 120 employees from the bank with expertise in IT and banking, with Sparda’s internal employees continuing to manage core software.

Deutsche Telekom did not give an exact value for the contract but said it was worth “significantly” more than €100 million. It comes with an extension option for a further three years.

T-Systems CEO Adel Al-Saleh said: “The Sparda Group's win demonstrates that clients continue to need help in managing their complex IT infrastructures.

“As a digitisation partner, we help our clients drive more productivity and efficiency in their IT infrastructures, as we help them get on the journey of digitisation.

Burkhard Kintscher, CEO of Sparda's IT unit, said the contract would help it to increase efficiency, drive innovations and reduce costs, citing potential savings in the hundreds of millions.

“We made a conscious decision in favour of T-Systems because we value the partnership-based cooperation and because the company also enjoys an excellent reputation in the market with regard to compliance and IT security.

“Together with T-Systems as a strong and experienced partner, we are able to cost-effectively meet the high requirements of the banking supervisory authority BaFin.”

T-Systems, which is currently undergoing a restructure under Al-Saleh, saw sales decline 1.1 percent to €6.92 billion in 2017.

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