German IT services provider T-Systems, a subsidiary of Deutsche Telekom (NYSE: DT) plans to focus its commercial efforts in Latin America on the banking industry, and is particularly targeting banks and insurers, T-Systems Brasil VP of business development, pre sales and partnerships Luiz Carlos Hirayama told BNamericas.
"The financial sector in Latin America is growing a lot, so we are looking to find some companies in the banking and insurance area. Just as an idea, banks' IT investments here in Brazil are around 7% of their total revenue, and that amount is twice as much as the investments in IT made by any other sector," Hirayama said.
Because of its strong background in the automotive industry, starting with the IT department of Mercedes Benz and BMW, T-Systems is one of the leading IT services providers for the Latin American automotive and manufacturing industries, including auto-part firms.
In Latin America, T-Systems has three offices in Mexico with two data centers, 11 offices in Brazil with three data centers and three branches in Argentina with one data center.
Hirayama said the company planned to focus on Brazil, Mexico and the US, as Argentina is not growing as fast as the company expected.
"They are having some political problems [in Argentina], but we are very aggressive in our strategy to grow in these other three countries. For the next few years we don't have plans to open new offices. We will be only growing in these countries," the executive added.
With the main goal of becoming the leading IT provider for the automotive sector in Brazil and Mexico, T-Systems is also focusing on the Brazilian manufacturing and retail sectors and on the Mexican finance, government and services industries.
To support the growth, T-Systems plans to promote its Dynamic Services for SAP (NYSE: SAP). According to Stefan Getrost, sales and service manager for the Dynamic Services unit, this business model is about providing customers the computing capacity they need and paying for it as they use it.
"The automotive and manufacturing industries are the ones that are most demanding this model, mainly because they are more innovative compared to other industries, such as the banking sector which is much more sensitive about having data outside their data center," Getrost said.
As one of the main partners of SAP, T-Systems has over 60 SAP customers in Latin America, offering support to over 25,000 users and with over 100 implementations.
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