By recessing drain and source regions, a highly stressed layer, such as a contact etch stop layer, may be formed in the recess in order to enhance the strain generation in the adjacent channel region of a field effect transistor. Moreover, a strained semiconductor material may be positioned in close proximity to the channel region by reducing or avoiding undue relaxation effects of metal silicides, thereby also providing enhanced efficiency for the strain generation. In some aspects, both effects may be combined to obtain an even more efficient strain-inducing mechanism.