Martin 1

April 28, 2010

To: John Peacock

From: Bret Martin and team

Subject: Proposal to efficiently and effectively change Microsoft Corporation. outsourcing

of support help and other services.

Microsoft Corporation is most well-known for its Windows operating system, its Windows
computer software, its chairman and founder billionaire Bill Gates, and its gaming systems.
However, in order to keep prices low and generate the most profits, Microsoft uses companies
from other countries for many of its components in these products and for its support help line.
Microsoft does not need to use some of these companies, and its support help line does not
need to be outsourced, especially because it would facilitate helping users with their problems
if the support specialists spoke the same language as the majority of their users.

For this report, I plan to see how and what Microsoft outsources and the feasibility of using
companies in the US. This would help Microsoft’s image in showing they do not outsource just
to generate profit by cutting costs, and by helping to stimulate the US economy by creating jobs
for citizens. I realize that not all of the materials and products Microsoft uses can be made in
the US, so I will see what can be accomplished without outsourcing and if it is not a huge
financial detriment to do so.

Background

Microsoft was founded on April 4, 1975 by Bill Gates and Paul Allen. Microsoft’s first big break
came with the partnership they formed with IBM, which allowed them to write the operating
systems for the computers IBM made. Microsoft made quite a profit off this, and when IBM
requested a new generation operating system be written, Microsoft wrote Windows, their own
their own operating system putting them in direct competition with the IBM computers they
helped make. Eventually Windows overcame IBMs computer in terms of sales, and with the
release of several new versions of Windows, Microsoft had captured over 90% of the market
shares of the world’s personal computers.

Problem

Microsoft has been known for outsourcing its maintenance and computer operations help desk,
however, this is only part of the whole telecommunications and network engineering services,
which are outsourced. Microsoft relies on Infosys Technologies Ltd to take over responsibility
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of managing Microsoft’s help desk and desk-side services operations. They also service
Microsoft’s applications, devices, and databases.

With my personal experience, being on the Microsoft help line is not only a long drawn out
process, but also very frustrating and confusing as well. Microsoft’s help center is in India, and
when I called for problems with my Xbox, I went in circles while on the phone, being passed
from person to person, none of them really knowing what they were doing. Eventually I found
the help of a manager, who seemed to know what he was doing, rather than just reading off a
screen that says what to do it a problem happens. I remember calling in numerous times about
a problem and they only had one answer for me, even though I told them that that solution was
not working for me.

Feasibility

The problem with changing Microsoft’s help desk to somewhere in the United States is the cost
of moving it. Microsoft set it up in India in the first place to save money on paying the workers.
Now considering all Microsoft’s success and profits, they would be able to move their
communications back to the United States without losing that much of a profit. By doing so,
they would help simulate the US’s economy by creating more much needed jobs.

They could also just open a small branch of the telecommunications department in the US.
That way, the shift will not be made all at once and be more cost efficient for Microsoft’s
spending by spreading the cost of doing so over a larger margin, so they will still be making a
medium sized profit the entire time rather than a low profit over a smaller time. Slowly over
time, Microsoft would shift all the way to telecommunications being in the US, but this time
span would be close to decades, rather than years as it would be for doing it all at once.

Topics to Investigate

For this report, we will focus on Microsoft’s outsourcing, the reasons for it, and other possible
alternatives or methods. We will look at the following:

 When did Microsoft first start outsourcing their telecommunications?

 What was the need to start outsourcing?
 Is it possible to move telecommunications to the US?
 Possible to have part of telecommunications in the US, if not all?
 What have they done about customer complaints about telecommunications?
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Audiences

The primary audience of this report is the Director of Microsoft Communications Sector,
Andrew Lund. Dir. Lund would be the main target, although it is unlikely that he would in fact
be the one to receive it and look over this proposal. However, he would be the person mostly
responsible for telecommunications and the person who would need the approval of if this
proposal were to ever be fully considered.

The secondary audience would be secretaries and employees under Dir. Lund that would come
across the proposal and read it before passing along to him. They would do this to make sure it
is worth his time to consider and read, and because he alone cannot read all the mail sent to
him.

Methods

We plan to use OSU’s internet library databases to find articles about Microsoft’s outsourcing
as well as the internet to find news articles and publications released about Microsoft’s
outsourcing plan. The following sources should provide a good start in our search for
information:

Bishop, Todd. “Microsoft outsourcing high-end jobs, union says.” Seattle PI Business. Web. 24
Apr. 2010.

Hayes, Heather B. “Outsourcing Xbox manufacturing: Microsoft shows the way for successful
outsourcing relationships. (Contract Services).” Pharmaceutical Technology 26.11
(2002): 88+. Academic OneFile. Web. 25 Apr. 2010.

Thidobeau, Patrick. “Microsoft signs outsourcing pact with Indian giant Infosys.”
ComputerWorld. Web. 24 Apr. 2010.

“Microsoft, Tata Extend Their Telecom Outsourcing Partnership; Microsoft is advancing its
outsourcing partnership with India-based Tata Consultancy Services.(Brief Article).”
InformationWeek (2005). Academic OneFile. Web. 25 Apr. 2010.

“Microsoft's Indian outsourcing documents.” Electronic Engineering Times 1474 (2007): 62.
Academic OneFile. Web. 25 Apr. 2010.

“Microsoft's Indian outsourcing documents.” Electronic Engineering Times 1474 (2007): 62.
Academic OneFile. Web. 25 Apr. 2010.

“Yahoo: Time for Bold Moves? To repel Microsoft's takeover bid, the Internet giant's options
include outsourcing to Google, finding another buyer, or private equity.” Business Week
Online 7 Feb. 2008. Academic OneFile. Web. 25 Apr. 2010.
 Martin 4

I also plan to create a survey for those who have called a Microsoft help support line. I will
include questions to the effect of; if the experience was helpful; they were able to communicate easily
and normally with whom they talked to; will they call back again in the future. These are just some
suggestions and outlines for questions that we will be asking people about their experience calling
Microsoft for assistance with a product.

Qualifications and Resources

I don’t know the persons in my group well enough to be able to establish who has what strength and
weaknesses, but I plan on having them tell their strengths, so that we made divide and conquer based
on each other’s strengths. I hope to have a strong team, and a strong team is good in everything and
has little weakness. It would be bad to have people who are good in persuasive writing and bad in
informative writing, because then our informative portions would really suffer. I have found that I am
quite proficient at most forms of writing, although not excelling at any particular form of writing. I
intend to take whatever part of the report that others do not wish to do because they feel they are not
skilled enough to get the highest grade the group can achieve.

Projected Work Schedule

The following schedule will be what we base our efforts on and who should do what by what time.

Activity Responsibility Total Time Completion date

Gathering Info All 15 Hours Week 6

Preparing the Progress report Muller, Molly 2 Hours Week 8
Analyze info All 10 Hours Week 7
Organizing Info Martin, Bret 5 Hours Week 6
Planning the Draft All 15 Hours Week 6
Drafting Report Do, Nguyen 10 Hours Week 8
Planning Revisions All 2 Hours Week 8
Revising the Draft Neelam, Anusha 5 Hours Week 9
Revising the Draft Miller, Amanda 5 Hours Week 9
Editing Roth, Mark 3 Hours Week 9
Proofreading All 5 Hours Week 10

Hours Estimated: 77 Hours

Hours used in Class: 7 Hours
Total Hours for Project: 84 Hours
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Project Cost Table

Printing, at $0.10 a page ~ $9.50

Binding Clear binder, $2.50

Research phone calls $0

Travel, at $0.37 a mile 50 Miles, $18.50

Other Costs, $8 an hour per team member 20 hours, $960

Total Cost for Project: $990.50

Call to Action

Considering the economy and its state today, we urge you to accept this proposal. Many US citizens are
without jobs, and to send a US company overseas for others to work for is just wrong. By following this
proposal, you will not only create jobs, but also change the image of your business by showing your care
for the US by wanting to help the economy. Our team stands by waiting and hoping that you accept this
proposal.