This probably means that Siemens will try to offshore even more development to India. I have serious doubts that they will actually stop working with externals. Their announcement to ditch the consultants may seem like they plan to reduce costs by letting internal people do the work but that is not how they work. I have worked as a consultant for Siemens business Solutions for a few years and this is how they do most of their business:
The bid on almost any big project available, often with prices below market value to make sure they win it. They make a big deal about how they are a huge company focused on quality, ISO certified etc etc.
Once they DO get the the project they hired a bunch of external to do the project of pass (part of) the project to a small consultancy firm (like I was working in) who are happy to get a chance to work on a high profile project.
The client charge the customer X euro, keep half for themselves and the other half goes to the sub contractors which results in very slim margins for them.
The put 1 Siemens project manager on it who has at least 50 similar projects. This means that they will do as little as possible, do not expect them to do more than send 2 mails a week.
In the end I was really disgusted with their way of working and I am very happy that I am not working for them anymore. They just pass the buck to their subcontractors, whenever there was an issue or problem with the spec you would just give in to keep the client happy and the subcontractor would have to resolve it so it did not cost them a thing.
I am sure they will start working with externals again once the economy picks up because the make tons of money doing fuck all.