Although on a spree to unload unprofitable units, including its traditional telecommunications manufacturing business, Siemens AG has decided to keep — but completely overhaul — its money-losing IT services and software operations.

In January, Siemens Business Services (SBS) will make way for a new entity, Siemens IT Solutions and Services (SIS), Siemens said Thursday in a statement.

The new group will bundle all of Siemens worldwide IT services and software activities, including the four software development entities Program and System Engineering, Siemens Information Systems, Development Innovation and Projects, and Business Innovation Center.

Christoph Kollatz, currently group president of SBS, will take over as president of the new entity. He has been given the mandate to slash costs by