Microsoft Outsources Internal IT to Indian Firm

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Global outsourcing firm Infosys Technologies said it will take over much of Microsoft's internal IT support, although the software giant downplayed the move as simple consolidation of existing outsourced functions.

"Infosys will provide Microsoft with IT help desk, desk-side services, and infrastructure and application support from multiple global centers," said a statement released by the Bangalore, India-based outsourcing and consulting firm.

Under the terms of the deal, Infosys (NASDAQ: INFY) will provide managed services at some 450 sites in 104 countries worldwide.

"Infosys will manage Microsoft's internal IT services for applications, devices, and database," the statement said. Desk-side support and service desk will be provided by Unisys in a partnership between the two outsource providers, according to Infosys.

For Microsoft (NASDAQ: MSFT), the payoff will come in dealing with fewer contractors and in increased efficiency with the hoped-for result of lowered expenses.

"This deal is simply a consolidation of work (IT support services) that used to be provided by multiple providers to a single provider," a Microsoft spokesperson said in an e-mail to InternetNews.com.

As part of the deal, Infosys will set up a Service Excellence Office to help Microsoft implement ISO/IEC 20000 IT service management processes standards, according to Infosys.

For its part, besides income, Infosys will gain early experience with the newest Microsoft products and technologies, and be able to use those skills to help other Infosys customers adopt them as well.

Few details of the deal's financial terms were revealed.

"Infosys will deliver this engagement in an outcome based pricing model, enabling Microsoft to associate and manage IT costs directly to business variables and demand," Sanjay Jalona, vice president and head of Infosys Manufacturing North America, said in a statement.

The 28-year-old Infosys has had a presence in the U.S. for several years. Since its founding in 1981, it has grown to a company of 105,000 employees with more than $4 billion in revenues, according to information on the firm's site.

Stuart J. Johnston is a contributing writer at InternetNews.com, the news service of Internet.com, the network for technology professionals.