Siemens Expands AT&T Outsourcing Agreement to North America

📅 August 29, 2001 - AT&T (att.com) announced today thatit has been awarded a six-year, $100 million contractby Siemens Business Services (sbs.siemens.com), awholly owned subsidiary of Siemens AG, to manage thecompany's information technology networkinfrastructure throughout the U.S. and Canada.

The agreement represents the second phase of a globaloutsourcing agreement negotiated a year ago by SBS andAT&T to transform Siemens' global communicationsnetwork to a state-of-the-art Internet Protocolnetwork. The first phase of the contract, also for sixyears, was valued at Euro 250 million, and coveredparts of Europe, Asia, Africa and South America.
By terms of the new agreement, AT&T Solutions(attsolutions.com), the company's networking professional services arm, will transform the ITinfrastructure supporting nearly 500 sites at 18Siemens operating companies in North America. AT&TSolutions will provide a full range of managednetworking services, wide area networking management,and data and voice transport services. This enablesSBS to offer its clients the full benefits of AT&T'sadvanced networking capabilities.
"Partnering with AT&T vastly accelerates Siemens'ability to deploy communications and networkingsolutions, and significantly increases our e-businessmarketplace opportunities," said Dr. FriedrichFroschl, president and CEO of SBS. "The success of ourinitial venture with AT&T and a second outsourcingpartner in Europe [Deutsche Telekom] made it clearthat an expanded scope will yield even greaterbenefits and cost advantages for Siemens and itscustomers."
Parts of the global Siemens Communications Networkalready have been outsourced to AT&T, enhancing theperformance and quality of service of Siemens' DataCommunication Network, reducing the need for capitalinvestment, cutting operating costs by pooling carrierpurchases across the globe and expanding e-businesscapabilities.
SBS retains overall responsibility for network serviceand the customer interface to Siemens companies andits external customers. SBS also will continueprovisioning value-added and consulting services ontop of the network platform and network securityservices.
The contract calls for AT&T Solutions to integrate andmanage global trans-border services provided byConcert, the global joint venture of AT&T and BT, andother carriers.
AT&T Solutions will manage Siemens' global networkfrom its Global Client Support Center in Birmingham,United Kingdom, with regional support from GCSCs inthe U.S. and Singapore, and a fault clearinghouse inGermany. The GCSCs feature AT&T's industry-leadingGlobal Enterprise Management System, which providesseamless networking capabilities-including predictivemanagement-by integrating proprietary AT&T softwarewith best-in-class enterprise-management software.GEMS also can provide AT&T Solutions' clients withe-business applications management and analysis.