Freudenberg IT

Freudenberg IT is going international. In fall 2003, the IT service provider incorporated a US subsidiary and opened offices in Plymouth/Michigan and Durham/South Carolina. The company sees good market opportunities from its new locations at the hub of the automotive industry and in the high-tech region of Durham, where a computer centre is to be opened. Further expansion is planned for Asia in 2005.

In 2003, the market for IT services in Germany was characterized by an unwillingness to invest on the part of many companies. This resulted in predatory competition which led to low prices in outsourcing and consulting business and heralded a wave of consolidation among IT service providers, where the main casualties were medium-sized enterprises. Freudenberg IT was able to expand external business through a range of measures. However, as several large projects for Freudenberg companies came to an end, Freudenberg IT nevertheless faced a decline in sales of some 5 percent. Business with companies outside the Freudenberg Group now accounts for some 50 percent of sales.

Freudenberg IT’s contribution to the “We all take care” initiative included driving safety training for 25 associates.

For the current financial year, Freudenberg IT expects to see the market pick up slightly. The company will continue to expand external business in this demanding environment.