Siemens is preparing to move 10,000 software developer to lower cost countries, the Finacial Times reports. This represents one third of software developers employed worldwide by the German industrial giant.

In Siemens' case, eastwards means Eastern Europe, rather than India. Which means that developers in Germany, its biggest market, are under particular threat.

Feldmayer notes the availability of highly skilled, cheaper labour in the region. The company has already set up a back-office pilot in the Czech Republic.

But will Siemens really ship so many jobs to Eastern Europe? The company is unhappy with the rigid, expensive labour market in Germany. Now it is putting a gun to the heads of politicians and unions.

Says Feldmayer: "We are not happy with the conditions in Germany in comparison with conditions in the strongest growth countries... In the end Germany should benefit from this trend as it will make us more competitive." ®