Siemans announced plans on Thursday to place one-third of its software development operations, or at least 10,000 jobs, in low-wage countries including EU accession states in eastern European. The move is expected to help the German technology giant cut costs while at the same time expanding its eastern European operations. During the first nine months of 2003, Siemens generated revenues of €3 billion ($3.6 billion) in Eastern Europe out of a total of €74 billion. The Siemens statement also said the company wants to take advantage of cost cuts and the potential of highly skilled labor in the east. Siemens also announced a desire to move part of its production and accounting operations offshore. In Germany, economic circumstances and rigid labor laws are encouraging drastic streamlining measures, and moving labor offshore is becoming an increasingly popular way to cut costs quickly.