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Microsoft's IT Outsourcing Deal

Microsoft is full of thousands upon thousands of software geniuses. And who knows Microsoft products better than Microsoft itself? That's why I am blown away by the news that Microsoft is outsourcing a good deal of its IT to Bangalore-based Infosys.

Infosys will support apps, infrastructure, PCs and take over the help desk.

It turns out that for years Microsoft has outsourced these functions to a bevy of partners. I just didn't know it. Now all that work is consolidated under Infosys.

Does your shop outsource? What is good and bad about the practice? Let me know at dbarney@redmondmag.com.

Posted by Doug Barney on 04/14/2010 at 1:17 PM


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Reader Comments:

Sun, Feb 20, 2011

Does anyone know any actual facts about how much per hour Microsoft pays help desk employees compared to what they would have to pay them in the United States.

Sat, Jun 19, 2010

Interesting that I am reading these comments as my project might be coming to an end with Microsoft. Why? You can get tech support cheaoer in India. Bad news: we get their work back, no documentation, they don't even finish the job. Microsoft is greedy, and for the 100 people that may lose their jobs, I think that wre ought set up homeless shelters ouside of Bill Gates' house- excuse me, mansion. I'm sorry, Bill, no matter how much try and train, American English is not their native language and the accebt remains. Or maybe you don't know that because you never finished college? how dare you turn back on the very people that gave you your chance! You are not better than the common man, woman that works for you. Proof is in the fact that you treat us as numbers-the number with dollar signs. If I lose this job because you are outsourcing, I am getting every employee that is laid off and we will rally at your house and get the press to watch. Remember, it's a free country-we are Americans, even though you truly don't support workers; rights.

Mon, Apr 19, 2010 Frustrated

I cannot begin to tell you how disheartening it is to see Microsoft outsource their IT staff. I have been in the heart-wrenching position of training off-shore employees how to do my job so I can join the ranks of the unemployed. I have nothing against those people. They are trying to make a living like the rest of us. But shame on the major U.S. firms that let good, loyal, capable people go for the sake of a lower wage. I know there are U.S. citizens that would love to have a Help Desk job... and will pay U.S. taxes and buy U.S. products!

Mon, Apr 19, 2010 Tom

I share everyone's pain, however this is a problem with our entire system and not only Microsoft (it's just that we are hearing about this deal). We need to figure out a way the US can become more competitive. Because even if we do switch vendors whose to say they are not offshoring? Or when they might begin offshoring? And what about everyday products manufactured overseas? Do we stop buying them? Certainly hard questions and hard choices... Microsoft employs apx 90,000 people and so we need to think about the impact on their jobs if were to move to another vendor, as this might make unemployment even worse. Open source is a nice idea, but does it really help our economy in the long term? I really dunno - there are arguments for and against. This offshoring is a complex systemic problem needing careful thought and all of our help to resolve. A change in our laws may help, but then we need to understand that there will probably be some related cost increase in product/services (at least in the short term). I would be willing to pay a modest increase if it were to bring jobs back to the US.

Thu, Apr 15, 2010 Terry Dallas

I think I may be ready to go to Linux on my systems. MS is greedy and does not appreciate it's US customers. Time to part ways, I think. I am not going after anymore MS certs, either.

Wed, Apr 14, 2010

yes i agree lets part in peace...hope the people you are paying peanuts will be able to buy your products. Good business model! and when u file for bankruptcy, federal reserve bank of india and the loyal indian tax payers will come for your aid!

Wed, Apr 14, 2010

time to trash windows and all ms products...lets part in peace microsoft...good luck in india! u dont need me, i dont need u.

Wed, Apr 14, 2010 Paul Indiana

It is only because workers in these other countries accept such marginal pay that they take away American jobs. From my perspective, it is nothing more than exploitation of foreigners and simultaneous decimation of our middle class.

Wed, Apr 14, 2010 Mike St. Louis

It's about time the people at Microsoft are going to have to deal with the bad customer service that we all do. I am currently working to make an outsourced group in South America acctually do their jobs. I am getting good at doing battles with windmills too. The good thing about this is that Microsoft support for the public is almost non existant, so the employees will have to put up with tech support people that have no clue. Maybe in a couple of years the industry will figure out that outsourcing to other countries costs much more in the long run than if the hired quality techs that know what they are doing.

Wed, Apr 14, 2010 Daniel Virginia Beach

Insidious greed to not give jobs to aid your own country and its people. It is not our problem to promote from the ranks of the poor in India. People here are out of work. People can be trained. Do the right thing.

Wed, Apr 14, 2010 Judy Michigan

"We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building even during the economic downturn," said Infosys CEO and managing director S. Gopalakrishnan in a statement. Ok, here is my comment: When the economy is down Microsoft will still grow no matter what they do because they have a great product everyone loves! What irritates me to "NO-END" is the outsourcing to other countries while American’s are struggling to keep jobs, keep their homes, and feed their children. Microsoft could help the U.S.A. economy by hiring college students here in the UNITED STATES. MICROSOFT wants U.S. A. business owners to be loyal to them, but they are not concerned with our children’s futures. There is a saying, if you give someone a FISH they will eat for a day, but if you teach them to FISH, they will eat for a life time. Microsoft receives no brownie points in my mind, shame on them for signing a 3 year contract with INDIA when they could put American’s to work! On another note: While setting up a home network for a friend I called the HELP DESK for ATT ( i.e.. India) (***No brownie points for ATT in my book neither!) On the other end of the phone is a man from India, with an American Name, who cannot speak English, and cannot and does not have a clue how to troubleshoot the physical layer of a network let alone. WHY MICROSOFT and ATT and other large companies like Pfizer think OUTSOURCING the HELP DESK and TECHNOLOGY to other countries will go unnoticed! I say shame on them so they can claim a bigger profit. Where is your sense of MADE in the USA and keeping our economy going? Now do you really want to know what I think? I think we all should invest in a learning curve to learn Red Hat and boycott these companies. And, I do not like Red Hat, but love the concept. Free! Instead of charging a ton of money for software.

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