Deutsche Post DHL signs contract with T-Systems to provide connectivity to DHL's data centers and global network

Deutsche Post DHL, the world's leading logistics provider, today announced the signing of a five-year agreement with T-Systems to provide telecommunications connectivity between Deutsche Post DHL's data centers and manage the service globally.

The agreement is part of a worldwide initiative by Deutsche Post DHL to raise efficiency and reduce costs in the provision of telephony and networking services. Total savings of the initiative so far are expected to amount to more than 190 million euros over five years.

The contract with T-Systems covers the main global data line, the so-called backbone, connecting Deutsche Post DHL's data centers in Prague, the Czech Republic, and Cyberjaya, Malaysia, and IT Services U.S. to the worldwide telecommunications network. It also covers a Global Telecoms Service Management function, which will ensure inter-operability and a seamless service across the worldwide network by managing the services provided by all regional telecoms vendors. The contract starts this month and includes the rollout of a state-of-the-art MPLS network replacing the existing global backbone.

"We can service customers with global operations at both their headquarters and their international locations," commented Joachim Langmack, Chief Sales Officer of T-Systems, adding that "Deutsche Post DHL will benefit from our global service management and flexible, on-demand bandwidth."

T-Systems is Deutsche Post DHL's current telecoms service provider in Germany and today's agreement is a strategic opportunity to integrate the telecoms network in Germany to further provide a seamless service for the Group across the world.

Deutsche Post DHL earlier this year signed agreements with providers in the U.S. and Europe to raise efficiency in its telecommunications services.  Related programs, which focus on rationalizing, harmonizing, and improving inter-operability of telecoms services across business units, are also underway in Deutsche Post DHL's Europe, Asia-Pacific and Emerging Markets regions and throughout the Americas.

As part of its IndEx cost savings program, Deutsche Post DHL has identified and implemented a wide range of measures to reduce indirect costs and derive more value from its businesses. The Group is confident that it will reach its goal of saving 1 billion euros in indirect costs in the second quarter of 2010.