It's hardly unprecedented for Microsoft, or any other tech company, to hire overseas outsourcing firms for contract work. But given the economic climate, and the company's recent layoffs, there will probably be extra scrutiny on today's Economic Times report that outsourcer HCL Technologies of India has reached a five-year, $170 million deal with Microsoft involving as many as 600 workers.
The Economic Times says the contract is related to Microsoft online services, but it doesn't describe the work in detail. It's the latest in a series of customer wins for HCL, with companies including Xerox and others.
It's not clear if the agreement is replacing existing outsourcing agreements for Microsoft in India or expanding the scope of the company's outsourcing there. The company also has a sizable base of direct employees in India. We've asked the company for confirmation of the report, and additional details, and we'll update this post depending on its response.
Microsoft in January announced cutbacks including plans to lay off up to 5,000 employees globally over 18 months, although the total could end up being less, depending on the direction of the company's business. Microsoft has also ticked off its base of contract workers in Redmond by reducing the rates it pays employment agencies, resulting in pay cuts for many of them.
Source: http://www.techflash.com/
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