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Dell, T-Systems Ink Outsourcing Deal

In a show of growing interest that spans across borders, Dell Computer Wednesday said it has signed a deal that will put its PCs and servers in the hands of more Europeans.

The Austin, Texas-based computer maker said it is working with Deutsche Telekom IT services division, T-Systems, on major projects and on international outsourcing contracts.

T-Systems is very adept at installing application service providing (ASP), customer relationship management (CRM) and electronic marketplaces. The Frankfurt, Germany-based company currently operates the network for BP including providing the connections, Internet access points, software and hardware, and data security. The division is also installed Linux on a z900 for managing IBM's e-mail databases.

"Multinational companies need global technology solutions that are cost effective and consistent. Through our alliance with Dell, we can eliminate local business boundaries and create global processes that deliver simplicity to customers," said T-Systems CEO Christian Hufnagl. "This closes the gap for customers executing an internationalization strategy."

In exchange, Dell said it would receive access to the customer potential of T-Systems in the European market.

During his OracleWorld keynote in San Francisco Tuesday, CEO Michael Dell said that the company is taking an "organic approach" to building its business outside the United States. The company recently scored deployment contracts with Orange Cellular, the rights to help the Federal Aviation Administration manage the nation's flight tracking, and a partnership between General Electric and Intel.

Dell said T-Systems customers will be able to tap into its client-server technologies as well its service infrastructure with more than 56,000 technicians in the United States.