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AFX News Limited: Deutsche Telekom expects to win 1 bln eur IT deal from Shell by end of Q1

03.19.08, 10:37 AM ET

BONN (Thomson Financial) – Deutsche Telekom AG’s T-Systems unit expects to win a 1 bln eur order to manage part of Royal Dutch Shell’s IT infrastructure services by the end of the month, Reinhard Clemens, head of T-Systems said during the company’s investor day.

Deutsche Telekom has already filed for regulatory approval of the deal, but said no contract has been signed yet.

Shell previously said it wants to outsource part of its IT operations and is in negotiations with T-Systems, EDS and AT&T Inc in this regard.

Should T-Systems win the order, it would take over part of the group’s IT operations, affecting 3,000 employees in total.

Shell plans to split the order into three parts. T-Systems is short-listed for the hosting and storage services, while EDS is short-listed for the end-user computing services. AT&T is short-listed for the managed network services.

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