"Infineon is currently reviewing and optimizing all in-house services," said Karl Pomschar, chief information officer at Infineon Technologies, which expects to almost halve its expenditure for SAP support as a result of the new agreement.
Under the contract, management consulting and information technology services provider Accenture is taking over tasks such as help desk support and regular maintenance of the SAP system. Prior to the Accenture deal, Infineon handled SAP support internally.
Outsourcing deals, which involve a business farming out control of duties such as applications development and tech support, or TPI, a firm that advises companies on outsourcing contracts, the total value of large outsourcing deals (those worth more than $200 million) rose from roughly $46 billion in 2001 to about $50 billion in 2002., have been seen as a bright spot for IT services providers. According to
TPI, however, has predicted that the outsourcing market will cool off this year. The total value of large outsourcing contracts should drop by 10 percent to 20 percent in 2003, according to the firm.
Other companies competing for IT services contracts include IBM, Hewlett-Packard and Electronic Data Systems.