Infy bags $150-mn Microsoft order

To manage its internal information technology services across 104 countries for 3 years.

Infosys, India's second largest information technology services company, has got an outsourcing contract from Microsoft to manage the global giant's internal IT services across 104 countries.

The three-year contract is said to be a little over $150 million (Rs 665 crore), according to company sources, and involves managing Microsoft's help desk, desk-side services, IT infrastructure and applications support in 450 locations globally.

Infosys will also streamline the implementation processes, simplify support and service and attempt to lower enterprise costs through the use of the latest Microsoft solutions such as Windows 7, the Bangalore-headquartered company said in a statement.

“This managed services agreement will further strengthen the Infosys-Microsoft partnership. 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,” said Sanjay Jalona, vice-president and head, manufacturing, North America, Infosys.

Infosys will establish a ‘Service Excellence Office’ to help Microsoft implement various standards and processes. Infosys had already partnered with Unisys to provide global desk-side support and service desk services.

“The 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,” said Jim DuBois, General Manager of Service Management, Microsoft.

By moving its non-core internal IT support and services work to Infosys, say analysts, Microsoft will be benefitted by focusing on its core product development, marketing and branding exercise. "This will not only help Microsoft in terms of sizable cost savings; it will also help them to move from a capex to opex model. As far as Infosys is concerned, it is a fairly significant deal for them, with a high level of opportunity to expand it to a sizable business," said Sabyasachi Satpathy, MD of Tholons, the IT outsourcing advisory firm.