SBS takes over entire Siemens infrastructure

Over the next three years, Siemens will hand over the operation of its IT infrastructure for all its units and regions to Siemens...

Over the next three years, Siemens will hand over the operation of its IT infrastructure for all its units and regions to Siemens Business Services (SBS).

The aims is to reduce Siemens’ IT costs by hundreds of millions of euros. The IT subsidiary will in turn benefit from extra business worth several hundred millions of euros annually.

Siemens CEO Klaus Kleinfeld said, "It 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. At the same time it strengthens the position of our IT subsidiary in the international outsourcing market."

The project was launched at the start of this year at two operating groups: logistics and assembly, and transportation. SBS is now operating all IT systems including the networks, computer centres, desktops and phone systems for the groups, and plans are under way to include the VDO automotive group.

Until recently, each Siemens group had its own IT infrastructure resources and its own “IT landscape”.

Siemens launched a project in 2002 to take account of increasing standardisation and growth in IT requirements and to put a cap on investment, maintenance and upgrade costs.

After achieving harmonisation and greater efficiency – including the introduction of standard web platforms – the next stage is to uniformly organise and operate the complete IT infrastructure as part of a shared services approach.

Siemens CIO and SBS will undertake the task jointly. The CIO corporate centre will establish the targets of a corporate-wide process and IT landscape, define IT standards, and design and enforce a globally binding service catalogue and service level agreements.

SBS will provide the infrastructure services based on the service level agreements concluded with Siemens CIO.

“Product-oriented groups in Siemens see infrastructure services purely as support processes,” said Kleinfeld. “For SBS, however, this area is a core business. Our IT subsidiary already operates around half of the company-wide IT infrastructure. The next logical step was to bundle responsibility for the IT services there too.”

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