Siemens to offshore 10,000 jobs

LONDON: Germany's Siemens plans to place one third of its software development operations, involving at least 10,000 jobs, in low-wage countries over the next few years, the Financial Times reported on Friday.

"We have to follow the trend, as all of our competitors are doing the same, and move some of our activities eastwards," Johannes Feldmayer, head of the industrial conglomerate's corporate strategy, was quoted as saying.

Siemens' current 30,000 software developer workforce are based worldwide. The company has a global research and development workforce of 50,000.

Siemens is also planning to move part of its production and accounting operations offshore, the newspaper reported.

Feldmayer said the company wanted to take advantage of cost cuts and highly skilled labour in eastern European states.

The Munich-based giant is already moving its back-office operations for Europe to the Czech Republic, in a pilot project.

"We are not happy with the conditions in Germany in comparison with conditions in the strongest growth countries."

Feldmayer said the trend for outsourcing would put pressure on Germany to change.

"In the end Germany should benefit from this trend as it will make us more competitive," he said.

Reuters