D.Telekom in advanced talks on T-Systems partner

COLOGNE, Germany, Jan 26 (Reuters) - Deutsche Telekom (DTEGn.DE: Quote, Profile, Research) is in advanced talks on finding a partner for its business client unit T-Systems, a source close to the German telecoms operator told Reuters on Saturday.

No decision has been made and several options are being reviewed, the source said.

The Financial Times Deutschland newspaper said on Saturday that Deutsche Telekom was in talks with India's top software firm, Tata Consultancy Services Ltd (TCS.BO: Quote, Profile, Research), a company named already last summer as a possible partner for T-Systems.

Deutsche Telekom declined to comment on the report.

The group, keen to cut costs to boost competitiveness, said last March it was looking for an international partner for T-Systems, which posted 2006 sales of 12.6 billion euros ($18.5 billion) and core profit of 1.23 billion euros.

T-Systems has around 56,000 staff and provides information technology and telecommunication services for business clients such as car maker Daimler (DAIGn.DE: Quote, Profile, Research) and government bodies.

It has been slow to seek growth opportunities outside its domestic market, compared with competitors such as French Capgemini (CAPP.PA: Quote, Profile, Research) and Atos Origin (ATOS.PA: Quote, Profile, Research). (Reporting by Nikola Rotscheroth, writing by Peter Starck; editing by Tony Austin)