Four system integrators have won the outsourcing contract to run the IT for the German division of the country's largest pharmaceutical firm, €39.59bn giant Bayer.
France headquartered Atos and Capgemini, US SI Cognizant and India-headquartered Tata Consultancy Services will take on 950 of Bayer Germany's IT team, in a deal Bayer's head of IT admitted is causing consternation among staff.
"It's not an easy step to get rid of so many people," Daniel Hartert said in a statement on Wednesday.
"Major IT companies like Capgemini are able to realise scale effects and have an innovative power that we want to benefit from."
The service providers will run the operation of Bayer's worldwide IT infrastructure and manage all of its computer equipment as part of a six year agreement.
The contract will start on New Year's Day 2020.
Bayer said that it will focus internally on developing digital solutions to help the group distinguish itself from its competitors.
"We will focus our internal IT competencies on generating value for our businesses in the Life Science industry by providing differentiating solutions in an increasingly digital world," Hartert added.
The move is also part of Bayer's "realignment strategy", a push to increase efficiency and cut costs, which was announced last year.
Bayer currently has a headcount of around 4,700 IT employees worldwide.
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