Siemens Launches IT Services and Solutions Business in the Lower Gulf Region
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23 September 2007 - Siemens LLC, the regional company of Siemens AG, today announced the launch of the operations of Siemens IT Solutions and Services in the Lower Gulf region (UAE, Qatar, Bahrain, Oman and Yemen).
Formed in January 2007, Siemens IT Solutions and Services is a consolidation of the company's global IT and software know-how by the merger of five previously diverse IT and software houses. The business has been given a sector-specific orientation, boosting competence in industry-specific solutions and generating efficiency of work-flows.
Globally, Siemens has a proven track record in this sector with a client roster of blue chip brands such as BBC, Microsoft, Lufthansa, MetLife, and Daimler Chrysler. The launch of Siemens IT Services and Solutions business here means that the company can now offer this expertise to this region. In the Lower Gulf alone, Siemens maintains over 1,500 full time employees and has an extensive presence in each country.
With more than half of Siemens' sales already software dependent, pooling the expertise of experienced IT service and solutions providers with that of established software development houses has resulted in the development of a powerful business that is able to offer customers comprehensive solutions, customised to individual requirements.
In 2006, the global market for IT services and solutions includes a sales volume of around EUR360 billion; this figure is expected to grow seven per cent annually [source: Gartner]. According to analysts, values in this region mirror the global figures. For example, in the UAE alone, the market is estimated to be valued at around EUR375 million (AED1.86 billion) per year, and experienced a 23 per cent year on year growth in the last year [source: IDC].
Commenting on Siemens' decision to launch the new business in the Lower Gulf, Anil Laud, member of the Group executive board of Siemens IT Solutions and Services said, "The substantial growth currently being experienced in the region, especially in the UAE and Qatar, is rapidly driving up the demand for medium and large scale IT services. With the formation of a local presence, Siemens is now ideally placed to fulfil these demands, and has the unique advantage of providing customers with end-to-end solutions, all from a single source."
Additionally other Siemens businesses already established in the region will now be able to supplement their range of offerings with the specialist IT know-how.
Joachim Kundt, CEO, Siemens LLC explained: "In this region there will be a particular concentration on two market segments: airports and public sector. For instance, we will be able to draw on Siemens' experience to equip airports with complex and bespoke IT solutions.
"One area where we have a competitive advantage is that of enabling electronic processing for government. We have excellent experience in building integrated security for identification systems, including e-passports, border control and command and control centres. Siemens recently built a state-of-the-art command and control centre for Dubai Police. A regional presence means that we are now in the position that we can work closely with our customers here, but with the full backing of an extensive global network of IT know-how."
The full portfolio of services from Siemens includes solutions in the major process areas, e.g.: supply chain, finance, business intelligence, and customer relations, which fully integrate into the customer's IT landscape. For example, in 2004 the BBC outsourced to Siemens all of its technology service provision. Included in this Siemens currently provides the BBC with 2.1 billion web page impressions per month; 35,000 concurrent broadband streams via the internet; tens of thousands of kilometres of network; 28,500 PCs; plus manages 2.2 million calls annually from the public. More recently Siemens secured a EUR 60 million contract for the design, build and operation of a new coding and multiplexing infrastructure.
Siemens IT solutions and Services also secured the largest Siemens deal ever by signing a EUR 7.1 billion contract with the German Armed Forces to operate and modernise the entire IT infrastructure together with IBM.
For DaimlerChrysler, Siemens coordinated and concentrated all their processes, sub-processes and services into one entity. This meant that previously independent departments were transformed into a homogenous operation, with a central service desk and cross-sectional functions. Siemens thus provided a single point of contact for all services and the transparency of all orders from tracking to reporting, right through to controlling and documentation.
Siemens IT Solutions and Services is rated as one of the world's top ten players for IT outsourcing and is a leading vendor of RFID solutions. With a workforce of more than 43,000 and operations in around 40 countries, it is expected to generate annual sales revenues of about EUR 5 billion.
