Microsoft Outsources Internal IT Management to Infosys

Microsoft will outsource its internal IT services, including help desk, desk-side services, and infrastructure and application support to India-based Infosys. Online reports suggest that the agreement could be worth as much as $100 million to Infosys, which will manage IT services for Microsoft's applications, devices and databases in 450 locations across 104 countries. Microsoft spent much of the past year in cost-cutting mode, as it saw a substantial revenue dip thanks to a global economic recession and cutback in business spending.

Microsoft's internal IT services have been outsourced to India-based Infosys, which plans on providing the company with help desk, desk-side services, and infrastructure and application support through multiple centers worldwide.  

"Infosys demonstrated that it understood our transformational goals by introducing a flexible and innovative end-to-end approach to manage our support infrastructure," Jim BuBois, general manager of Service Management for Microsoft, wrote in an April 13 e-mail for eWEEK. "The fully integrated solution developed by Infosys, combined with process compliance, a robust tool platform and the creation of a Service Excellence Office will help us enhance how we deliver end-user computing services to our internal employees and partners while leveraging the innovation and investments we make in developing new technologies."

In addition, Infosys will also establish a dedicated Service Excellence Office to assist Microsoft in implementing ISO 20000 and ITSM Processes, on top of managing IT services for Microsoft's applications, devices and databases in 450 locations across 104 countries. Infosys's partnership with Unisys will provide global support via the latter's multilanguage service desk and desk-side support. A Times of India article on April 14 stated that the agreement could be worth more than $100 million to Infosys.

In an April 13 statement, Infosys suggested that the knowledge of Microsoft technologies learned in the course of the agreement would allow it to service other customers using those same technologies.

"Our landmark agreement with Microsoft based on a unified IT Service Management roadmap will result in moving towards a service oriented organization along with improvement in quality of existing and new services," Anand Nataraj, vice president and unit head of Infosys's Infrastructure Management Services, was quoted as saying in that statement.

Microsoft has engaged in an aggressive cost-cutting regimen over the past year, with a 5,000-employee-layoff cycle in 2009 paired with eliminations of legacy products and research projects. While the company has enjoyed something of a sales uptick in recent months, with its Windows 7 operating system selling some 90 million licenses since its October 2009 release, the company is still waiting to see an uptick in business-oriented spending.