[biztech-discussion] We really do need to re-read 1984.

  • From: Emily Berk <emily@xxxxxxxxxxxxxxxxx>
  • To: biztech-discussion@xxxxxxxxxxxxx
  • Date: Tue, 16 Nov 2004 18:50:06 -0800

Lies are truth.  Outsourcing does not reduce jobs in the US.

-- Emily

NY Times: November 16, 2004
Microsoft Expands Operations in India
BANGALORE, India, Nov. 15 - The Microsoft Corporation announced on Monday that 
it was significantly expanding its software development operations in India as 
it opened a new campus near Hyderabad, its second-largest campus after its 
headquarters in Redmond, Wash.

Microsoft's chief executive, Steven A. Ballmer, formally opened the 28-acre 
campus in the suburbs of Hyderabad, which is 250 miles north of Bangalore, a 
rival technology center. The campus thus far has only one building, with 
capacity for 1,600 workers.

Besides Mr. Ballmer, the chief executive of the Intel Corporation, Craig R. 
Barrett, is to arrive in India this week, highlighting the country's growing 
role as a source of skilled technical labor as well as a sizable market. Mr. 
Barrett is scheduled to visit Bangalore and Delhi this week.

The issue of outsourcing, the movement of work to cheaper labor markets like 
India, was an issue in this year's presidential elections in the United States. 
The Democratic contender, Senator John F. Kerry, had promised to get tough on 
companies that were moving jobs overseas.

Even with the re-election of President Bush, corporations like Microsoft are 
still wary of being tarred as the cause of job losses. Mr. Ballmer said that 
his company would expand in India, but that this would not reduce job 
opportunities at its operations in the United States.

"The nature of our business is such that there is enough growth potential which 
allows us to hire both at our Redmond headquarters and here in India," Mr. 
Ballmer said after the opening. Microsoft has nearly 450 programmers at its 
development center in Hyderabad. "Since we are looking for very high levels of 
skills, we are looking to hire in the hundreds," Mr. Ballmer said.

Last year, Microsoft said that it expected its development center to have 500 
employees by 2005, but Mr. Ballmer said the company would exceed that target.

Microsoft is not alone. Global corporations like General Electric and American 
Express started by outsourcing low-end code-writing work to India, but taking 
advantage of India's pool of technical workers and lower labor costs, many 
multinational companies have recently stepped up outsourcing. Microsoft's own 
software development center in Hyderabad opened in 1998 with only 12 employees.

Increasingly, though, these corporations are outsourcing high-end technology 
work to India. Microsoft, for instance, outsources work, from call centers to 
advanced embedded software development, to India.

... "These deals signify Indian outsourcing companies' growing clout in 
influencing technology decision in American boardrooms," said Sudip Nandy, 
chief strategy officer of Wipro.


Emily Berk

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