Earlier this month, Infosys made what one Indian publication called "a thumping statement on business recovery by forecasting a 16-18% growth for this financial year, awarded wage hikes of 14% and revealed plans to recruit 30,000 employees."
The only bit of humor in this tale is Microsoft's apparent discomfiture with being outed as an outsourcer. It appears that Infosys was so happy to win the contract it spit out a press release that caught Microsoft off guard.
Microsoft hastened to note that it has been outsourcing its IT services for some time. In a statement to a ZDNet writer, the company said, "This is simply a consolidation of work that used to be provided by multiple vendors to a single provider, Infosys. Microsoft has had a concentrated effort to be more efficient and save money. This was a major area where it could do this. This new contract will not impact internal resources."
I believe that one of the other vendors was Hewlett-Packard. In any case, if it was time to consolidate those services, Microsoft could have given the job to a U.S. firm or even (gasp) handled the job internally. But why think about your own country?
Instead, Microsoft has been lopping off heads. At the end of February, it announced that it had more than made good on its plan from a year ago to eliminate 5,000 positions by the middle of June 2010. Not that I was worried about them, but it's nice to know that departing Microsoft execs are well taken care of: CFO Chris Liddell was given a severance of nearly $2 million when he decided to leave, according to Microsoft's always interesting filings with the Securities and Exchange Commission. How big was your severance?
A little more than a year ago, IBM stunned the tech world by suggesting to its thousands of laid-off workers that they take jobs in India. Microsoft's outsourcing announcement isn't quite that grotesque, but when it comes to taking care of the workforce, it appears that all of our tech giants are about the same.
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