Ireland to profit from Siemens’ outsourcing move

22 Mar 2005

Siemens has announced that it is to outsource the management of its IT infrastructure to a subsidiary, Siemens Business Services (SBS). Siemens’ customer interaction centre in Cork, which employs 230 people, stands to benefit from the decision.

By moving its IT infrastructure into SBS, the global computer and electronics giant hopes to slash its IT costs by hundreds of millions of euro but the deal will still be worth several hundreds of million of euro annually to the specialist outsourcing company.

The Cork centre is SBS only tier one customer interaction centre in the EU. A spokesperson for the facility said that no jobs were being created directly as a result of the move but that it would strengthen the services on offer there. It is envisaged, for example, that it will provide a number of services to global Siemens’ companies including outsourced helpdesk services in more than 12 languages across EMEA.

Outsourcing the IT infrastructure will be implemented over the next three years. SBS has already begun operating complete IT systems for a number of Siemens operating groups including networks, computer centres, desktops and telephone systems.

“This is a great boost for SBS and reinforces our strengths in the outsourcing market,” commented Derek Wilson, managing director of SBS in Ireland, which employs 450 people in its offices in Dublin, Cork and Belfast.

Commenting on the move, Klaus Kleinfeld, CEO at Siemens, said: “This will enable us to optimise the information and communications structure within the company, which is essential to our competitiveness and innovative strength. Harmonising and standardising IT is a key lever.” He added: “At the same time this strengthens the position of our IT subsidiary in the international outsourcing market.”

SBS provides IT services to a number of organisations in Ireland including AIB, the Houses of the Oireachtas and Statoil. Services range from IT consulting and systems integration to the operation and maintenance of IT infrastructures. The company is among the top 10 providers worldwide in the IT outsourcing and maintenance area and has approximately 36,100 employees worldwide.

SBS’ Irish customer interaction centre, which was established in Cork in 1999, is located at Penrose Quay.

By Brian Skelly