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T-Systems SWOT & PESTLE Analysis

ID : 52489853| Jan 2020| 15 pages


Business Sector :Information Technology Services

Operating Geography :Germany, Europe, Global

About T-Systems :

T-Systems is a German global IT services and consulting company headquartered in Frankfurt. Born in 2000, T-Systems is a subsidiary of Deutsche Telekom. This ICT conglomerate, offers a range of integrated solutions for business customers, including the secure operation of legacy systems and classic ICT services, the transformation to cloud-based services (including tailored infrastructure, platforms and software) as well as new business models and innovation projects for the business fields of the future, such as data analytics, the Internet of Things, machine-to-machine (M2M) communication and Industrial Internet. The company has a geographical presence in 20 countries and employs 46000 employees as of 2018.

T-Systems Revenue :

6.9 billion Euros - FY2017

Competitive Analysis of T-Systems

The SWOT analysis for T-Systems is presented below:
1. Strong Integrated Offerings
2. High Competitive Positioning
3. Strategic Partnerships
4. Strong ranking in digital transformation
1. Negative financial performance
2. Job cuts and Layoffs
1. Growing focus of 5G technology
2. Growing focus of digital transformation in Automotive
3. Focus on Toll4Europe
4. Increasing focus on IoT and M2M communications
1. Threats to IT/NT Operations
2. Changes in regulations in Germany and EU
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Detailed SWOT Analysis of T-Systems



1. Strong Integrated Offerings: With a strong hold on digital services in Europe, T systems offers a robust integrated spectrum of offering with one-stop shopping: from the secure operation of legacy systems and classical ICT services, the transition to cloud-based services (including international networks, tailored infrastructure, platforms and software) as well as new business models and innovation projects in the Internet of Things. The company is highly focused in Delivery integration which deals with integrating delivery functions within the portfolio units, creating end to end cost transparency and clear ownership. The company through cross delivery functions plans to drive standardization, automation and tooling which ultimately leads to cost savings. The company believes that the path of digital transformation is not driven by separate systems but integrated solutions. Be it Big data, cloud solutions or other data base solutions, system integration is a crucial factor which can lead an organization onto its digital journey.

2. High Competitive position in Unified communications and collaboration: From a wide range of UCC functions like voice, video conferencing, e-mail, fax, messaging, chat and social collaboration, T systems is well positioned in Dynamic Services for Unified Communications and Dynamic Services for Collaboration. As per a market research company, Global Data has T-Systems UCC services rated as “very strong” in the global market. The UCC services provided by the company is designed both for global as well as small to mid-sized companies. As per a senior analyst from Global Data, “T-Systems is able to scale the UCC services for multinational companies with the same platforms and solutions from the private cloud”.

3. Strategic partnerships: T-Systems has extensively followed an expansion strategy through Strategic alliances and partnerships. The company has already partnered with Major IT industry players including Cisco, Microsoft, Avaya, Swyx and NFON. The company has recently partnered with British Telecom which would help it to expand its geographical presence. Recently the company also entered into an alliance with SAP to include Internet of Things (IoT) solutions for real-time logistics. T-Systems further intensified their partnership with Microsoft for SAP applications, managed services based on Microsoft Azure and Microsoft 365, digital solutions with artificial intelligence and mixed reality, solutions for the Internet of Things and extensions of Microsoft Azure to dedicated hardware.

4. Strong ranking in Digital Transformation Services & Solutions: According to analysts in ISG, T-Systems has a strong hold to face digital challenges, based on their comprehensive cloud services. With regards to the Company holding top ranking for “Intelligent Operations – Large Accounts,” the analyst form said that T-Systems offers a comprehensive cloud portfolio to meet changing customer requirements. Comprehensive services including the Internet of Things, data analytics, and cyber security the extensive partner network and attractiveness of the portfolio were some of the parameters which were considered for ranking of T-systems. T-Systems were ranked a leader in the “Large Accounts” business segment. Similarly ISG has also placed the public cloud services provided by T Systems amongst top four cloud providers amongst Microsoft, Amazon Web Services, and Sales force. They ranked Telekom and T-Systems as top providers in the area of Intelligent Business Solutions/Platform-as-a-Service.


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Check Out Analysis of Other Relevant Companies

References used in T-Systems Analysis Report

1. Data Protection Regulation-

2. Annual Report-

3. Deutsche Telekoms IT business splits up after partial sale failed

4. The future of production-

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Copyrights and Disclaimer

T-Systems SWOT and PESTLE analysis has been conducted by Soumya Surya Adhikari and reviewed by senior analysts from Barakaat Consulting.

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