Freudenberg IT invests $38 million for growth

January 06, 2010 By: NCTechNews Category: Datacenter

(Durham, N.C.) Freudenberg IT, the internationally active IT service provider, is launching operations at two new data centers simultaneously and expanding its capacity in the process. The Management Board of the Freudenberg Group has opened new data centers in the Weinheim, Germany and Durham, North Carolina, USA. This increases the total number of data centers to eleven that are now at the Group’s disposal in Europe, North America and Asia. The Group is preparing itself for already contracted and expected future growth with a total investment amounting to $38 million. The growing demand for IT outsourcing and application hosting services among small and medium-sized companies has necessitated this capacity expansion. “Our efforts are consistently focused on upgrading the services that we offer and internationalizing Freudenberg IT,” says Dr. Martin Stark, member of the Freudenberg Group’s Management Board.

Freudenberg IT has been among the one of the world’s most successful spin-off, independent and financially sound IT companies for some time now. A study carried out by Pierre Audoin Consultants (PAC), Europe’s leading firm of consultants and market analysts for the Software and IT Services Industry (SITSI), in February 2008 put Freudenberg IT at the top of the list of spin-off IT companies in Germany. On an international level, Freudenberg IT is ranked second among IT companies that are spin-offs from German concerns. External business in the free market accounts for more than 75 percent of the company’s current turnover.

While many companies in the IT sector have scaled their operations down again, Freudenberg has continued to expand its global reach. “The advantage of customer proximity arising from an increasingly global presence is one of Freudenberg’s success factors,” Dr. Stark explains.”Last year we opened new branches in Philadelphia (USA), Peking (China), Singapore (Singapore) and Kiev (Ukraine).” Dr. Stark believes that the stable association with the Freudenberg Group underlines the company’s dependability in the eyes of its customers.

Founded in 1995 with the mandate to establish a position for itself in the external market, Freudenberg IT now specializes in small and medium-sized enterprises and has a reputation for identifying the requirements of a customer quickly, advising the customer in accordance with these requirements and supporting them in its capacity as a reliable partner. “With Freudenberg IT, we have been able to prove that a spin-off IT company can be so successful on a long-term basis that Freudenberg IT has now become an important business segment for the Freudenberg Group. The considerable investment for the future underlines the importance of this business for Freudenberg,” says Dr. Peter Bettermann, speaker for the Management Board of the Freudenberg Group.

Freudenberg IT is one of only 11 certified SAP global hosting partners and offers a clear focus on medium-sized businesses. Freudenberg IT’s outstanding market position in IT outsourcing and its successful 2008 fiscal year were among the main reasons the company was nominated as a finalist for an SAP Pinnacle Award 2009 in the Global IT Outsourcing category. The SAP Pinnacle Awards recognize SAP partners that have excelled in developing their partnership with SAP and mutual business by providing high-quality products, solutions and services to customers. The company employs more than 500 associates at 16 locations in Europe, America and Asia. The IT service provider is part of the 160-year old Freudenberg Group.

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