DHL.

DHL IT service is based out of Prague. The German Deutsche Post acquired this company and now they are the biggest global business service logistics industry in the world. They are in 220 different countries with 5% of the global trading volume. They employ more than 500,000 through out the world and manage 1,000,000 customer transactions per hour. They obvious have strength in numbers. In the late 1980's Germany had privatization of their postal and communication services. The German Government also privatized T-mobile. In the mid 1990's DHL was privatized and had their IPO for stock over the German stock exchange.

DHL had a stable business until the internet came through and made the postal service antiquated in many ways. West Germany turned Eastern Germany around when the Berlin wall fell down by completely privatizing business. Now the Postal services have banks attached to them to back them up as insurance. Deutsche post new privatization and alliance with banks gave them lots of free cash and sent them on a spending spree. In 1998 Deutshe post bought lots of stock in DHL and in 2004 completely owned the entire company. Excel Supply chain was also another acquisition that solidified the company to what it is today. This was the largest logistics supply chain in England.

The basis of the company is basically a two pillar structure with Die Post Fur Deutch land and DHL Logistics company for the world. The business is split into different sectors making up the Global business services, IT services which is in Prague and Malaysia, claiming management, corporate procurement, corporate real estate, fleet management, finance operations, HR operations, In-house consulting, innovative management, insurance and risk management, IT GBS and corporate center, and Legal services.

The BPO Business Process Outsourcing is risky in keeping it in house and centralizing it for quality service. The competition is gaging costs and prices against the market and the main focus is on the customer and the company needs. The main focus is to increase efficiencies and drive costs down because you are competing against yourself with the shared service centers to avoid taxation when distributing the product among shared service centers.

The IT Services business model is made up of build services and run services with the focus of creating new items in IT and continuing the day to day support. These are all made up into three spheres of professional, resource and production.

DHL chose Prague as the center of IT because the central European location provided lower costs and had a strong English background. There are also abounding workers available in IT and telecom skills. The government was supportive of DFI and had a positive investment climate. What is important to note is that in 2004 DHL was big on IT and in 2006 they expanded into GBS.