Microsoft's India outsourcing raises protests

By Staff, ZDNet Asia
Thursday, July 03, 2003 04:16 PM
Microsoft has started to shift some of its operations from the U.S. to India, a move which could leave hundreds of American workers jobless.

According to U.S. daily Seattle Times, the Redmond, Wash.-based software giant is relocating its customer support work in Texas and North Carolina to India. The two centers, which handles e-mail and phone queries on Microsoft software, currently employ about 800 workers each, said the report.

While the firm has not decided how many people will be impacted by the move, Seattle-based Washington Alliance of Technology Workers claims hundreds of jobs could be lost.

Worker unions have long protested against the trend of offshore outsourcing. Besides fears of job losses in the U.S., they have questioned the skill levels of foreign IT workers. In the longer term, they fear the move will also erode the country's technological leadership.

The Washington Alliance of Technology Workers claims Microsoft's plan contradicts the firm’s public position that the impact of their focus on sending work abroad is not going to affect U.S. employees, the Times News Network reported.

"There may be some impact in the next year on our U.S. sites," Microsoft spokeswoman Stacy Drake was quoted as saying.

She added more details would be revealed after the company completes the testing of its recently-opened support center in Bangalore.

A Reuters report said Microsoft plans to hire 150 people for this pilot, but industry sources said the number could be increased to at least 1,000 people in about two years if the trial proves successful.

"To meet the needs of our customers worldwide, we expect to continue to invest in a technical work force in India to assist us with our expanding product development, information technology and customer support functions," a Microsoft India executive was quoting as saying.

Earlier this year, research firm Giga Information Group forecasted a boom in overseas outsourcing for the U.S. IT industry and expects outsourcing to India will grow by 25 percent this year.


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Talkback 7 comments

Why does Microsoft call its new OS Longhorn ? It should be called Bangalore
Posted by Linux on Friday, June 04 2004 07:31 AM

It gr8 and we in the IT Industry can afford to get support from microsoft at a lower rates. And the indian people are brilliant, they are better than most technical people in ameraca.
Posted by Richard on Thursday, July 08 2004 09:41 AM

Spelling
Learn to spell before you make a comment.
Posted by anonymous on Monday, June 02 2008 05:47 AM

I dont understand the big fuss about outsourcing work to India. The outsourcing always existed much before the IT boom. The automobile industry outsourced their work to cheaper countries back in 70's and 80's. Even textiles, fabrication and many more products were always outsourced to cheaper countries. Now just because the media has become more accessable and stronger, the big hype of job loss and outsourcing is created. If the skills are available at a cheaper rate and that is what thrives the competition, i dont see snything wrong with Outsourcing. Why blame India for something they are not responsible for? They didnt force us to Out source our jobs to their country.
Posted by Michael Furlong on Thursday, July 08 2004 09:45 AM

Wonder what you will say when they outsource your job to someone in India.
Posted by Mary Contrary on Thursday, September 29 2005 12:15 AM

You are so intelligent and great that you know how to spell America properly...
Posted by Diane on Monday, September 17 2007 07:48 AM

Un-American Activity
I am old enough to have been in IT when the first pc were deployed in New York, by companies like Equitable Life.

I also remember the chaos from ill-mannered programs and hardware that were not properly supported with drivers, application code etc. At that point, and with difficulty, Bill gates and Microsoft came to the rescue and the monster began to grow. Mr. Gates and company brought order to chaos and forced all the software developers and HW manufacturer to play well together and especially by Microsoft's rules. This was a good thing then. Mr. Gates and company were also among the first to lead the charge for outsourcing jobs from America to foreign soil. The lie about qualified staff was nurture, fed, and grew. There are at present thousands of IT processionals’ who would give their right arm to be employed. There are graduating students who face terminal unemployment, never having the opportunity to
start a career, and others who are seeking new majors.

The new president and his cabinet want to rebuild a broken America but the corporate greed that has gotten to be the norm here just will not quit.

Perhaps it is time to dismantle Microsoft, as was Ma Bell broken up. Additionally, it may be time to legislate job creation by US companies and those who want to have a presence in America. You must employ Americans on American soil. While we cannot become isolationists, we can certainly take care of our own first.
Posted by Gregory A. Vaughn Sr. on Monday, January 26 2009 11:57 AM


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