Information Technology

September 18, 2008

Fujitsu to Consolidate IT Business in North America


Fujitsu Group, provider of IT-based business solutions for global marketplace, announced that it is consolidating its businesses in North America. This will be done by bringing together three companies – Fujitsu Consulting, Fujitsu Computer Systems Corporation, and Fujitsu Transaction Solutions – under one umbrella.
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As part of consolidating its IT strengths in North America, Fujitsu will establish a new company, Fujitsu North America Holding. The new company is expected to step up its solutions business base in North America and will be established on Oct. 1.
 
The strategic move is aimed at generating better synergies among the three companies by consolidating their IT strengths under one corporate structure. This will enable the organization to respond to client needs with integrated suites of innovative, world-class IT services and solutions from Fujitsu, the company said.
 
At present, these companies have different focus areas. For instance, Fujitsu Computer Systems, a wholly-owned subsidiary of Fujitsu, is committed to the design, development and delivery of advanced computer systems, application infrastructure software products, and managed services for the business enterprise. Fujitsu Computer Systems is a strategic solutions provider to organizations by offering technology innovation, customer choice, product quality and reliability, as well as customer service. 
 
The consolidation move, which will see the formation of one company, is expected to trigger greater collaboration among the three companies. It will also be a boost to customers since it will enable a unified approach in providing clients with a broad portfolio of products and services.

"Our clients will benefit from a simplified engagement model with improved accountability and greater access to the complete suite of integrated Fujitsu offerings," said Richard Christou, corporate first senior vice president, Fujitsu Limited, in a statement. "This will significantly improve responsiveness to our global clients who look to Fujitsu to support their North American operations."

Fujitsu has appointed Farhat Ali to the role of president and chief executive officer of the new company. In this capacity, he will lead the business synergy effort of the new operation while continuing with his current responsibilities as president of Fujitsu Computer Systems.

"With revenues approaching $2 billion annually, the combination of the three companies will rank Fujitsu among the top North American IT services and solutions companies," Ali said. "The benefits of a business of that scale include improved responsiveness to client needs, faster time-to-market with integrated value-added solutions, greater market presence, improved operational efficiencies and additional support from our key alliance partners."

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Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Eve Sullivan

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