July 29, 2004

Subject Icon: It's the Stupid Economy
Posted by Foreign Correspondent Skates (Toronto) at 7:54 PM

Microsoft Caught Offshoring Core Development

The Seattle Times is publishing a article about documentation leaked by an unknown MS employee detailing the offshoring of core product development to India.

A Seattle labor group said it has new evidence that Microsoft is shifting high-level work to foreign contractors, including work on the next version of Windows.

Microsoft has long hired outside companies to supplement its labor force and develop partnerships in the technology industry, but its activities in India are being scrutinized amid the national debate over the outsourcing of technology work to developing countries such as India.

A concern is that even the highest-skilled and best-paying work, such as software development, is now subject to competition from lower-cost locales abroad.

The evidence is a cache of Microsoft contracts with Indian technology vendors that were leaked to the Washington Alliance of Technology Workers, an AFL-CIO affiliate that has focused on outsourcing in its effort to organize tech workers.

"The notion that next-generation technology is going to be the exclusive domain of domestic-based employees of the company is rapidly fading away with the disclosure of these documents," said Marcus Courtney, WashTech president and organizer.

The documents include wage lists and projects for Microsoft at Infosys, Wipro, Satyam and Tata Consultancy Services, the four largest Indian software and technology-services companies.

Much of the work involves testing, preparing user guides and building specialized tools. One of the Infosys projects is a guide for customers switching from an Oracle database to a Microsoft database.

White collar jobs are in the same peril today that manufacturing jobs were in the '80s.


Comments

One of the Infosys projects is a guide for customers switching from an Oracle database to a Microsoft database.

Not only are our jobs in peril, but we have to work with inferior products as well.

Posted by: Mike at July 30, 2004 08:11 AM

Related: Intel is developing its new chip in Israel. India leads the world in a US-partnered commercial satellite imagery. China is the #2 oil consumer, and they dont even have cars yet ! They have declined to partner with US space programs and War on Terrorism. They are the country to watch. I have oft wondered why the US is not mentioned in the book of Revelation, i think its because we will be burdened with national and retiree debt, divided, over-taxed, in short, irrelevant. and thats my cheery news !

Posted by: Allen at July 30, 2004 09:22 AM

Regarding Allen's comment about our burden of retiree debt...

This week's Meet the Press had Joe Biden and Zell Miller. I forget which of these gents was talking about that topic (the transcript will be available later this week), but he was talking about our foreign debt, and that other countries were getting older faster than we are. He suggested that their retiree debt problems are going to be our problem too, because they will need their money back to pay for it.

Posted by: Dennis at August 2, 2004 08:09 PM
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