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Microsoft can't handle its own IT needs
SOFTWARE VENDOR WITH INSECURITIES Microsoft has palmed off managing its internal IT services to the Indian outsourcing firm Infosys.
The deal will see the Bangalore based firm provide technology and applications support and something called desk-side support, which we presume doesn't mean bringing cups of tea to the Vole's employees but rather helping them when they have hardware and software problems with their PCs. Furthermore, the outsourcing firm will manage Microsoft's internal IT services including systems and databases at 450 of the company's sites.
For Infosys, which made its name on the back of such deals, winning business from one of the IT industry's biggest names represents a massive PR coup. Infosys in turn partnered with the computer hardware and services company Unisys to provide part of the service contract, specifically that all-important desk-side support.
Microsoft, like most firms that outsource their IT services requirements, explained that this move will enhance the level of service its employees receive. The notion that Microsoft, one of the industry's biggest employers, is somehow unable to handle its own IT needs doesn't create an overwhelmingly positive image for a company that tries to sell software and support contracts to other businesses.
We assume that most, if not all, of the Vole's internal computer systems run some variant of the firm's Windows operating system. One would think that the firm that legally has access to all of its own source code would understand the software better than anyone else.
However a spokesVole told us that the deal is just a "consolidation", saying that it merely represents a "concentrated effort to be more efficient and save money". Apparently the Vole has been palming off its IT services needs for ages to a number of outfits but plumped to put all its eggs in Infosys' basket. We were also told that the deal "will not impact internal resources", suggesting that the company doesn't employ any IT management professionals itself. That could explain a lot of things, we reckon.
For Microsoft the cost savings might be great, however the image of the IT software leviathan being unable to handle its own PC and IT systems support requirements doesn't present a great confidence builder for potential customers. µ
Tags: Microsoft
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The “global” playing field will only be level when it is no longer cost effective for companies to hire labor in India, China and other popular outsourcing destinations. America needs to enforce a “VIRTUAL FOREIGN EMPLOYEE” tax on all US corporations that hire foreign employees to work on US based projects. If skilled engineers from foreign countries want to work for US corporations on product versions that will be sold to US consumers then allow these skilled foreign engineers do it from the US headquarters of these corporations not from their home countries such as India. Until a “virtual foreign employee tax” is enacted no one in America could compete with someone in India or China as a lot of people living in those countries could afford to live on $5,000 USD /yr. It’s not a matter of skill or education those are cop out excuses the real decision about outsourcing is cost and payroll savings. Trust me I know I am a former Senior EVP of a large Fortune500 technology company and I was in charge of locating and managing the company’s outsourcing partners. I hope Obama tackles this issue.
In time, M$ will see the folly of it's ways. The time lost/down time caused by talking to an indian in India will cost more than a local tech.
LOL...it's much easier to admin than all the servers you need to support Exchange...IIS...public key server...Sharepoint...etc. to get the same functionality ;-)
Kidding aside, it is pretty sad that they've decided to outsource jobs that should be kept in the US, but they'll find that the outsourcers will soon write applications to compete with them...
While I agree that Outsourcing may be a good way to "Trim the Fat" for a large company, the results are not always "Better".
Looking from the perspective of someone that has contracted to do hands on service for an Outsourcing company (Dell, AT&T, Whatever)... One is called to go into a totally unfamiliar environment, doesn't know what the rules or policies are of that environment is, and is tasked to "fix something". Often, this contractor actually breaks something more or doesn't fix something correctly BECAUSE he or she is unfamiliar with the IT Environment in question. Then the person and Outsourcing company is viewed as being "Inept".
Wheras, someone that actually works for the company needing service, usually has full knowledge of IT Environment, and can fix things more quickly and correctly.
It really depends on how complex the IT infrastructure is. Outsourcing works ok for simple problems and simple environments. It does not work well with complex environments... which is something that the "suits" don't get.
One of the reasons our economy is going down the tubes is the offshoring of jobs.
We sell a little piece of our soul every time we do this.
My recent interaction with Dell's offshored customer service was the worst I have ever experienced.
They took my djeeurb!
They understand that like all American public corporations that Americans do not need jobs. There will be plenty of consumers in Asia.
... That Micr0$oft uses all Linux servers - running Samba, of course - because they don't like rebooting every 4 or 5 days? Certainly not going to get Linux expertise in-house, gotta go half way around the world to find that.
"Even Enormocorps like MS feel the pinch and will outsource non core business competencies."
Except that's the problem -- IT support is not a "non core business competency" for them. The computers are running Windows, running Office, they are running servers using Windows Server. *The products they make are used for IT*. Internal IT in this case means a bunch of people *within* the company they can ask "what should be improved?", get the earliest early warning on virus attacks, etc. versus your outsourced IT just being more of a black box, you contact someone at the IT company and they "fix" it. I mean I assume Microsoft will have a pretty direct line to them but it sure won't be the same as having IT internal to the company.
As an analogy, it'd be like if some car company COMPLETELY eliminated dealer service networks and just fullfilled the warranty by paying for you to go to a mechanic when your car needs maintenance. They could save money perhaps, but the dealer repair bays also provide direct feedback to the car company on defects, improved repair techniques, etc. for TSBs (Technical Service Bulletins) & recalls (if it's safety related), and for improvements incorporated in the next model year.
AFAICR Microsoft hasn't done it's own internal IT support in a long time; at least the UK office hasn't.
They've been outsourced since at least the 1990's.
Unless this is something other than internal desktop support/hardware?
It's called business in the 21st Century Latif. Even Enormocorps like MS feel the pinch and will outsource non core business competencies. I see you are from the Michael Scott Business School of Life so perhaps your unbalanced opinion is understandable.
@MicroNeedes
Google translate still needs a lot of work I guess.....
Every outsourcing of IT-Support in recorded history has caused a feeble loss in customer satisfaction, rising costs (beginnging with the fiscal year following the introduction) and loss of worker efficiency.
So, the golden days are over even for Microsoft? This is sad news.
Most People Accept -=7=- As FINAL Solution, Stepping into Hardware like NEW Blue Bonnett. Plenty of Sash...
HTML5 may Not be your thing, yet does make picture show. .Net 4 is In House in Beta 1&2 plus R/C, out 2 months & strangely, makes objects seem rubbery, like super ball.
Visual studio 2010& good impersonation of SP1 for -=7=-. IE9 alphoheadwinded.
More ENTERPRISE, extended thru 31Dec as 90 day offer, so lastweek. Buy Any System Today & ReStorePersonel Faith With Humanity.
SilverLight 4 is tomorrow, Another Quash into Death Star, errr, adobe. GrabZillia.
Now if Every Week had So Much, mabe Contientent Would have something worthwhile to do, other than horrrid extortion upon whorthless product, till ~thisyear.
drashek
Internal projects will always take a backseat when it comes to resources. Company like MS needs to cut a lot of dead wood or extra fat, whatever you might want to call it. Facing competition from Google, Apple among other companies; it needs to focus on getting to its core business and keeping the talent that work on products that generate revenue. That said it is great for Infosys and I would be more thrilled if some smart brains from Infy sees this as an opportunity to get insight on some research-oriented technologies like Machine Learning and Natural Language Processing. This will be helpful for Infy and make it and keep it a powerhouse of IT in the long run.
With respect to this article, I would quote the most basic economic principle taught to 9th graders - Division of labor. Work requiring high degree of talent is paid higher and yields higher profits still. At the lower end of spectrum, it's lower returns. Microsoft is very right in outsourcing the low value work and focussing on high end work. Author's comment on MS having access to Source Code and all that Jazz, is exceptionally funny as MS Desks would be supported by Cisco Routers, Dell's hardware, networking paradigms, et al. which have no relation to MS Windows / Enterprise Servers.
Developing products like Windows and providing desktop services are a completely different things. The reason quoted "enhance the level of service its employees receive" was quite sensible. I believe this article was written with a sense of partiality rather than being independent and unjudgemental. A bit of research here will show that Infosys itself outsources its Desktop and Hardware services for its employees to an American firm called IBM? The logic is simple, "to get better service" since a working computer is the most important thing for an IT company.
How can having the source code for Windows improve the quality of services?
Microsoft is being sane and not macho about doing everything itself. Is not a coup for Infosys ? Microsoft is cutting flab and passing it on to Infosys. Says more about Microsoft's focus.
No idea what the deal is worth ?
Be it Microsoft (or Citibank, GM, GE, DELL) or any other behemoth, recession has taught many elephants to dance to the tune of cost pressures and improve profitability...and Infosys is just one name that promises happy ride on the persuit of productivity and reduced operational costs. Everybody recognises it - including HP, DELL and Oracle..
Lawrence- problems realted to PCs need not always be related to the OS...ever experienced a hard disk crash or trobles with mouse?
For MS it makes a lot of sense financially , a resource from infosys will obviously cost less than an internal resource from MS..cost savings.
Not being able to handle it's own IT needs, well boeing and airbus have been outsourcing some of the manufacturing for quite soometime, dose it imply they dont know how to make aircrafts????
that they can afford the good stuff for themselves.
Do you think that the guy who founded McDonald's ever actually ate there?
I would say Microsoft means business and this seems to be a calculated and practical move to ensure that they ensure better support to their employees in a very cost effective manner. For a Multinational like Microsoft which has always held a benchmark when it comes to providing after sales support (through outsourcing)such a move of outsourcing should hardly make any impact or even a minor scratch to their market image.