Infineon Pushes Ahead with Restructuring Plans - Human Resources Administration Functions Outsourced to EDS

Oct 16, 2003 | Business & Financial Press

Joint news release by Infineon and EDS

Munich and Rüsselsheim/Germany – October 16, 2003 – Infineon Technologies (FSE/NYSE: IFX), the world’s sixth largest semiconductor company, is about to slim down its corporate structures even further. Payroll accounting, major parts of the recruiting function and student intern hosting in Germany and Austria will be outsourced to EDS in Rüsselsheim, one of the leading companies in the outsourcing services sector, for the next ten years. Both companies expect a contract volume amounting to a double digit million Dollar sum. It is planned that EDS will take over parts of the Infineon workforce.

The contract envisions for the transfer of operating responsibility for the areas concerned to EDS with effect from January 2, 2004 and the completion of the transfer of all processes to EDS by October 1, 2004. The quality of the outsourced functions is ensured by precise specification of service descriptions, service levels and key performance indicators.

“By outsourcing our payroll accounting and major parts of the recruiting function we are pressing further ahead with the extensive restructuring measures planned as part of the implementation of our Agenda 5-to-1 corporate strategy,” said Dr. Thomas Marquardt, Global Head Human Resources. “Taking over personnel processes is where EDS’ core competence lies, and so we can further improve the relevant services for employees at our sites in Munich, Regensburg, Dresden, Warstein and Villach and, at the same time reduce operating costs as a result of the greater transparency and control as well as gain greater flexibility.”

“We have gained a first-class reference customer in Infineon in the business process outsourcing sector,” commented Reinhard Clemens, EDS Regional President Central Europe. “The contract represents a milestone for EDS in Central Europe and will enable us to position ourselves successfully in this growing market.”

The market research company Gartner Dataquest expects the readiness of companies to outsource their human resources administration to an external service provider to increase significantly over the next two years. According to a study released in July 2003, the market for HR business process outsourcing is expected to grow by 11 percent over the previous year, to a total of US $27.9 billion worldwide. The volume is forecast to reach US $37.8 billion in 2007. Moreover, the aim is not only to reduce costs, but also to improve services.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at

About EDS

EDS, the premier global outsourcing services company, delivers superior returns to clients through its cost-effective, high-value services model. EDS' core portfolio comprises information-technology and business process outsourcing services, as well as information-technology transformation services. EDS' two complementary, subsidiary businesses are A.T. Kearney, one of the world's leading high-value management consultancies, and PLM Solutions, a leader in product data management, collaboration and product design software. With 2002 revenue of $21.5 billion, EDS is ranked 80th on the Fortune 500. The company's stock is traded on the New York (NYSE: EDS) and London stock exchanges. For further information please visit

Media contact at EDS
Ute Blauth
EDS Deutschland
Phone: +49 (0)6142 80 3507

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