Microsoft has denied reports by the Washington Alliance of Technology Workers (WashTech) that it"s outsourcing core development to Indian contractors. Earlier this week the WashTech reported that Microsoft was planning on outsourcing the core development of Longhorn. Microsoft has since then made a statement assuring the public that it"s not outsourcing the core development code, but rather keeping it close to the Redmond campus.
Microsoft Corp. denied Thursday that core development work for Longhorn, its next version of the Windows operating system, was being done by contractors in India. Earlier this week, the Washington Alliance of Technology Workers (WashTech) in Seattle said that it had learned from Microsoft"s internal documents that the Redmond, Washington, company was outsourcing core development of Longhorn to Indian contractors.
WashTech"s opposition to outsourcing to Indian contractors misses a key point, which is that Microsoft is in any case offshoring key product development to its own software development center in Hyderabad in South India, according to analysts who added that in either offshore model, the high-end work moves out of the U.S.