Deutsche Post aims to bank €1bn through outsourcing

Deutsche Post World Net, the global logistics organisation, is close to striking a deal with HP Services to hand over the running of its IT operations.

The proposed seven-year outsourcing agreement is aimed at saving Deutsche Post approximately €1bn in reduced IT costs and by making better use of resources.

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Approximately 2,500 Deutsche Post employees who currently support its data centre operations - such as application and data management - will move to HP under the deal.

All applications used by Deutsche Post customers will continue to be developed and run within the company and some IT services - such as professional services - will also remain in-house.

John Allan, CFO of Deutsche Post World Net, said the move will "significantly contribute" to achieving business goals while "preserving the high level of service that our customers expect".

So far, only a letter of intent has been signed but a full agreement is expected to be announced by the middle of the year, covering operations in the Czech Republic, Malaysia and the US.