By Staff
Thursday, July 03 2003 04:16 PM
URL: http://www.zdnetasia.com/news/hardware/0,39042972,39139020,00.htm

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.