Someone has leaked an internal Siemens presentation to the weekly German business magazine Wirtschaftswoche showing that the company is deeply worried that the cost of running and managing the Siemens IT Solutions & Services (SIS) division are so high that they threaten its future existence. Martyn Warwick reports.
The leaked presentation shows that managers are worried because the costs of maintaining the SIS division are "significantly higher" than costs being borne by Siemens' rivals and competitors such as IBM and HP.
According to the whistle-blower's document sales at Siemens' SIS services have fallen by 22 per cent over the period beginning in Q1, 2008 through to the end of Q3 (July 31) this year.
It seems also that general sales and admin costs account for 15 per cent of turnover and the presentation warns, in stark terms, that the costs must be brought under control and massively reduced if the division is to survive even in the immediate future, never mind in the long-term.
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