Oil and Gas

T-Systems wins 5-yr Shell contract worth 1 bln eur

FRANKFURT, March 31 (Reuters) - Deutsche Telekom's DTEGn.DE business client unit T-Systems won an information technology contract from Royal Dutch Shell Plc RDSa.L worth 1 billion euros ($1.58 billion) over the coming five years, the German company said on Monday.

T-Systems, which earlier this month announced an alliance wit U.S. IT services provider Cognizant CTSH.O, said the deal was the biggest in its history and allowed it to increase its revenues from abroad by more than 20 percent.

Last year, T-System had sales of 12 billion euros, of which 2.5 billion euros were generated outside of Germany.

It said it had the option to extend the contract for global hosting and storage services after five years.

Shell said in December it was looking to outsource a substantial part of its information technology operations in an effort to cut costs and that it was in talks with three companies.

Reporting by Nicola Leske