T-Mobile UK outsources finances to cut costs

Deutsche Telekom’s UK mobile operation, T-Mobile UK, has struck a five-year deal with Indian managed services firm Infosys BPO to outsource its finance operations.

Infosys has been tapped by T-Mobile to support several core processes for its finance directorate — covering customer finance, commercial finance and accounting (F&A) and procurement operations. The move will leave T-Mobile to concentrate on financial issues that are “strategically important or which deliver competitive advantage”.

T-Mobile is under pressure to cut costs after the parent company posted a goodwill writedown of €1.8bn for the UK operation in the first quarter, fuelling speculation that T-Mobile is looking to offload its UK business.

In a market with more than 125 per cent penetration by the end of March, 2009, O2 UK is the market leader with over 28 per cent market share, while Orange, Vodafone and T-Mobile all hover around the 21 per cent mark. 3 lags behind with just over six per cent of the market.