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Google Lawsuit Exposes Microsoft Offshoring Deal 429

2old2rockNroll writes "In more news from Microsoft's Google lawsuit, it appears that Ballmer's 2003 trip to China may have had as much to do with Microsoft moving jobs as selling software. It seems that the Chinese are not pleased with the number of jobs being moved to China, and one of Lee's duties was to identify jobs for export. Although hiring in Redmond has slowed, a Microsoft spokesperson admits they are "growing their work force" in China. Is it possible that Bill Gates' recent lament over the decline of US CS graduates and research spending was merely crocodile tears?"
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Google Lawsuit Exposes Microsoft Offshoring Deal

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  • by djupedal ( 584558 ) on Monday September 05, 2005 @02:34AM (#13481545)
    "Is it possible that Bill Gates' recent lament over the decline of US CS graduates and research spending was merely crocodile tears?"

    How many times do people need to be reminded? Investing in MS is risking having your own money used against you in the marketplace.
  • by BluRBD!E ( 627484 ) on Monday September 05, 2005 @02:35AM (#13481550)
    why is this significant again? Companies offshore all the time. Hell, some companies move their headquarters to different continents.
    • by Anonymous Coward on Monday September 05, 2005 @03:14AM (#13481697)
      Hello Gentlemen,

      I'm a first year programming student at an Ivy League school and I've
      just finished my Visual Basic classes. This term I'll be moving onto
      C++. However I've noticed some issues with C++ that I'd like to
      discuss with the rest of the programming community. Please do not
      think of me as being technically ignorant. In addition to VB, I am
      very skilled at HTML programming, one of the most challenging
      languages out there!

      C++ is based on a concept known as Object Oriented Programming. In
      this style of programming (also known as OOPS in the coding community)
      a programmer builds "objects" or "glasses" out of his code, and then
      manipulates these "glasses". Since I'm assuming that you, dear reader,
      are as skilled at programming as I am, I'll skip further explanation
      of these "glasses".

      Please allow me to make a brief aside here and discuss the origins C++
      for a moment. My research shows that this language is one of the
      oldest languages in existence, pre-dating even assembly! It was
      created in the early 70s when AT&T began looking for a new language to
      write BSD, its Unix Operation System (later on, other companies would
      "borrow" the BSD source code to build both Solaris and Linux!)
      Interestingly, the name C++ is a pun by the creator of the language.
      When the first beta was released, it was remarked that the language
      would be graded as a C+, because of how hideously complex and unwieldy
      it was. The extra plus was tacked on during a later release when some
      of these issues were fixed. The language would still be graded a C,
      but it was the highest C possible! Truly a clever name for this
      language.

      Back to the topic on hand, I feel that C++ - despite its flaws - has
      been a very valuable tool to the world of computers. Unfortunately
      it's starting to show its age, and I feel that it should be
      retired, as COBOL, ADA and Smalltalk seem to have been. Recently I've
      become acquainted with another language that's quite recently been
      developed. Its one that promises to greatly simplify programming. This
      new language is called C.

      Although syntactically borrowing a great deal from its predecessor
      C++, C greatly simplifies things (thus its name, which hints at its
      simpler nature by striping off the clunky double-pluses.) Its biggest
      strength is that it abandons an OOPS-style of programming. No more
      awkward "objects" or "glasses". Instead C uses what are called
      structs. Vaguely similar to a C++ "glass", a struct does away with
      anachronisms like inheritance, namespaces and the whole
      private/public/protected/friend access issues of its variables and
      routines. By freeing the programmer from the requirement to juggle all
      these issues, the coder can focus on implementing his algorithm and
      rapidly developing his application.

      While C lacks the speed and robustness of C++, I think these are petty
      issues. Given the speed of modern computers, the relative sluggishness
      of C shouldn't be an issue. Robustness and stability will occur as C
      becomes more pervasive amongst the programming community and it
      becomes more fine-tuned. Eventually C should have stability rivaling
      that of C++.

      I'm hoping to see C adopted as the de facto standard of programming.
      Based on what I've learned of this language, the future seems very
      bright indeed for C! Eventually, many years from now, perhaps we'll
      even see an operating system coded in this language.

      Thank you for your time. Your feedback is greatly appreciated.
    • why is this significant again? Companies offshore all the time. Hell, some companies move their headquarters to different continents.

      Perhaps it's significant because Microsoft is whining about declining CS enrollment and lobbying the government for an increase in the H-1B cap, when they really aren't doing much local hiring. It is significant because what they say for publication is a lie, and their real interest is solely in cheaper labor. It also seems significant that they are apparently buying Ch

  • by dauthur ( 828910 ) <johannesmozart@gmail.com> on Monday September 05, 2005 @02:37AM (#13481557)
    Is it possible that Bill Gates' recent lament over the decline of US CS graduates and research spending was merely crocodile tears?"

    That's called "marketing". Microsoft cries shortage, geeks raise their hands like an eager student with an answer in class. I sure as hell would take a job from Microsoft if given the opprotunity. I'd surely go to hell for it as well, but fact is... Microsoft is on top, and will be for a long time. With top-rung knowledge and experience, one can definitely sprint to retirement well before 99% of the people that (s)he graduated with from secondary school.

    Other thing is, China has a lot of people. And a lot of smart people. Survey says: Cheap labour and lots of it.
    • by Raul654 ( 453029 ) on Monday September 05, 2005 @03:27AM (#13481747) Homepage
      "Microsoft is on top, and will be for a long time."
       
      I find this statement very questionable. Microsoft is big, rich, and entrenched. Those are pretty much their only virtues. On the other hand, when was the last time you heard anyone talking about a Microsoft product in anything but a lament? When was the last time you heard people eagerly talking about Microsoft's next move, like you hear so often with Google nowadays. Microsoft doesn't get the pick of the talent anymore, either. Microsoft only has two successful products - Windows and Office. Quite frankly, I think Microsoft is at the beginning of the same kind of decline that the industry has seen so often from the former giants like DEC and HP and IBM (before IBM re-invented itself)
      • by Grishnakh ( 216268 ) on Monday September 05, 2005 @03:46AM (#13481802)
        I find this statement very questionable. Microsoft is big, rich, and entrenched.

        Not only that, but big and rich doesn't mean you'll stay on top for a long time, at least not when you're a publicly-traded company.

        Back in 1984 or so, IBM was the big player in the PC space. IBM was, and still is, a huge company. Someone back then may have also assumed that IBM would stay on top of the PC market for a long time, but look what happened to them. It took them a long time to recover from the "attack of the clones", and even then they never regained top-dog status, and just recently gave up altogether by selling that division off to the Chinese company Lenovo.

        Big companies can go from market leader to market loser or even bankrupt in a very short time.
        • by NoOneInParticular ( 221808 ) on Monday September 05, 2005 @05:14AM (#13482009)
          Not really true. IBM might have been a big player in PC space, yet PC space was insignificant at the time. It's like saying Microsoft is in the market of fabricating mice. True, but hopelessly inadequate.

          A more apt comparison would be to say that IBM was a huge player in the mainframe market. And where are they now? They're still a huge player in the mainframe market. It is just that this market has slowly eroded, and IBM is slowly changing to accommodate this. Likewise, only when the PC market will dwindle does Microsoft have anything to fear. Finally, 40 billion dollars go a long way for living through hard times. Don't count on Microsoft going away in the next few decades.

          • I'm tired of posting this, but I'll do it again, just to make it clear...

            That 40 billion dollars is owned by the shareholders. Shareholders expect a return, whether on capital growth, or returns as dividends.

            If Microsoft stop performing well, the shares will drop in price, unless they make payouts to shareholders (who would think it's a good investment). Shareholders will start coveting that large stash of money and demanding a piece of it.

            That 40 billion could disappear in a second, from out of the c

  • ... at a game between Go masters, and white just removed a bunch of black stones from the board
    • It is fitting that you should say that cause Bill Gates is quite an accomplished Go player. Anyone who wants to understand how Go is used as a strategy particularly how that strategy influences strategic thought should read this [army.mil] paper.
      • Ignorance is bliss. Have faith. etc.

        In the west at the moment, stupidity, ignorance are integral to our culture, even those who are irreligious and are worn like badges of honour.

         

    • Heh, looks like black forced white to use a move up killing those dead stones -- now black has sente for the all-important endgame AND white has lost his best ko threat. I think that move decided the game for black.

      Remember, folks, kibbitzing is the most important part of go!

      In other news, this story is just 'China kicks US ass', and that's a truism in go as well as industry.

  • Oh no! (Score:5, Insightful)

    by AkaXakA ( 695610 ) on Monday September 05, 2005 @02:38AM (#13481563) Homepage
    OMG! A global company is hiring people globaly!

    People really, really need to put this into perspective.
  • Oh dear. (Score:5, Insightful)

    by DMouse ( 7320 ) on Monday September 05, 2005 @02:39AM (#13481565) Homepage
    Time for another round of "oh no, all our jobs are going to [insert country here]". Oh gebus. Spare me How many years of offshoring scaremongering do I have to put up with? I remember it from the 80s.

    *sigh*
    • Spare me How many years of offshoring scaremongering do I have to put up with?

      DMouse: This is your boss. Please report to work bright and early on Tuesday morning for training. You'll be doing the training... of your Chinese replacement.
    • Re:Oh dear. (Score:5, Interesting)

      by Dicky ( 1327 ) <slash3@vmlinuz.org> on Monday September 05, 2005 @02:56AM (#13481628) Homepage
      I offshored myself.

      Until early this year, I worked for Sun in the UK. They decided, in their infinite lack-of-wisdom, to close my office and lay everyone off (and have been trying to hire some people back ever since realising what a stupid move that was), pretty much because they thought they could replace us with much cheaper employees in Bejing.

      So I went and got myself a job in Hong Kong - like Bejing, only a lot more expensive, widely English-speaking, and bloody civilised :-) And, no joking, I'm off to hear RMS speak here in a few minutes - I'm interested more in the reaction to him from the audience than what he has to say - not because I'm not interested in what he has to say, but because I've heard him say it before...
    • In the 70s, 80s and 90s there were many, many COBOL jobs. Now there are virtually none. There are still plenty of COBOL-based mainframe systems about but most of the work is now done in India. So off-shoring has removed some work. Why wouldn't this happen to developers of any other languages. Certainly something like VB could be shifted abroad at the drop of a hat and it wouldn't be too great a stretch to see other programming jobs disappearing east as well.
    • People who aren't all that good at their job, and conciously or subconciously know it are panicked about the possibility their job may be outsourced. Unfortunately these days, half the people who claim to be software engineers fall into that camp.

      The moral is be good at your job. And if you can't be in the top half of people doing a job that is so easily mobile, you ought to pick a trade career that is less likely to be outsourced.

      And like you say, its no different now than any time else in recent history (
  • by ThinkFr33ly ( 902481 ) on Monday September 05, 2005 @02:40AM (#13481570)
    Microsoft outsourcing 1000 jobs to China equates to about 1.75% of its work force. (57,000)

    In addition, it's very probable that most of those jobs are for non-critical, non-core projects. This frees up the local developers to work on more important projects.

    Could Microsoft hire more local workers to fill these positions? Sure... but it's hardly news that Microsoft outsources 1.75% of its workforce.
    • Microsoft is attempting to develop their products to work better for Asian users.

      I can't imagine a better way to develop a product that they know will work well for the Chinese than to have it built in China.

      Frankly, I applaud this.
    • Those jobs are the *entry* jobs to the company though!

      Sure, you can hire people off the street with skills. But isn't it easier to get lesser skilled people? You put them to work in the easy jobs, and you see how they perform in your work enviroment plus the get a better idea of how to work with your IT needs.

      Now you have a pool to draw from when your higher level programmers bail, with a proven track record in the company.
    • In addition, it's very probable that most of those jobs are for non-critical, non-core projects. This frees up the local developers to work on more important projects.

      Did you realize what you just gave away ?. It's called racial elitisim, but now with a nationalistic fringe attitude. You start off by giving away the unwanted and least important jobs to the immigrants or just plain offshore them, and before you know it you have a huge population of educated unemployed and per-capita income just comes cr

      • n addition, it's very probable that most of those jobs are for non-critical, non-core projects. This frees up the local developers to work on more important projects.

        Did you realize what you just gave away ? It's called racial elitisim, but now with a nationalistic fringe attitude.

        Sorry to tell you this, as you are from an "offshoring destination", but this is a standard sales pitch FROM the offshore companies. Look at any of the India majors: TCS, Wipro, INFY, Satyam, whatever. You will see in their

    • Microsoft offshoring 1.75% of its workforce is no big deal.

      Microsoft offshoring 1.75% of its workforce every year is a big deal.

      "'At the time of my departure, MS was on track to outsource over 1,000 jobs a year to China,' [Lee] said in a court declaration."
      Do you have any idea how quickly this adds up? Think where they'll be in ten years, or twenty.

      grumble grumble... won't even read the bloody article... grumble grumble
  • Hah hah! (Score:5, Insightful)

    by Seumas ( 6865 ) on Monday September 05, 2005 @02:41AM (#13481577)
    And just a day or two ago, someone on Slashdot was telling me all about how at least Microsoft has never cut an American job for one overseas. Nyah nyah! :P

    So when all the jobs are outsourced and everyone around the world is making $8/hr in the new Global Economy, who is going to be able to afford $200 for an operating system? Or $500 for Office? Or $1500 for Adobe?
    • Re:Hah hah! (Score:2, Insightful)

      by gromitcode ( 888226 )
      ummm they haven't. This is not MS cutting US employees, they are hiring from overseas instead of hiring more from the US. So your point would be?
      • Re:Hah hah! (Score:2, Insightful)

        by Seumas ( 6865 )
        Chinese are not pleased with the number of jobs being moved to China, and one of Lee's duties was to identify jobs for export.

        MOVING and EXPORTING jobs is not the same as HIRING new people for new jobs.
    • Comment removed based on user account deletion
  • by Anonymous Coward
    Through his foundation bill has been funding us schools. Is it his fault that the whole damn country hates anyone capable of critical thinking, as well as anyone who uses words longer than 4 letters.
    • by SuperKendall ( 25149 ) * on Monday September 05, 2005 @03:33AM (#13481759)
      Through his foundation bill has been funding us schools.

      The schools have attained self-awareness!

      Our only chance is to strike them down while they are occupied futility arguing on Slashdot and are not creating weapons of ultimate doom out of cafeteria food.
    • If you think Microsoft gives back even 1% of what it takes from local school budgets every year, then you and the moderators are clearly taking hits from the same crack pipe.

      Repeat after me: Microsoft is a net drain on education funds.
  • Why cant people just accept the fact that MS does these things for a logical business oriented reason. If you people have such a problem with their software why dont you get off your asses and go do something about it. Well this guys a hipocrit you say? Nay, Im moving to Washington next week to finish up my schooling at UW cause I know MS hires directly out of the UW Seattle CS Department
  • Makes sense. (Score:4, Interesting)

    by Anonymous Coward on Monday September 05, 2005 @02:47AM (#13481598)
    Microsoft can't keep buying the U.S. government off forever; eventually, someone is going to assume the U.S. presidency who will actually allow the department of justice to enforce antitrust law and hold it for long enough for a case against Microsoft to be litigated.

    It would be good if before that happens, Microsoft could hedge their bets with a nation that can truly understand and respect them. China understands that capitalism should be used as a tool of oppression, not a tool to fight it, so they're the perfect escape from any other nation who might sit up once in awhile, remember that monopolies hurt markets, and try to meddle in the internal affairs of a company just because they're committing injustice or breaking the law or something. Rupert Murdoch is big on China for the exact same reason.
    • by Lonewolf666 ( 259450 ) on Monday September 05, 2005 @04:48AM (#13481958)
      In other news, you can often read that China allowed some foreign investment only if the investor makes significant concessions in form of technology transfer. Frequently, this takes the form of requiring a partnership with a chinese company. This way, the chinese make sure they get their part of the profits and get their hands on the know-how.

      If Microsoft think they have a cushy retreat in China, they are in for a nasty surprise. As much as I dislike the way Chinese government tramples human rights, their ways of keeping greedy corporations in their place deserves some respect.
  • by putko ( 753330 ) on Monday September 05, 2005 @02:47AM (#13481599) Homepage Journal
    So this is the 2nd or 3rd time this lawsuit has produced interesting titbits about M$. This thing is going to be the gift that keeps on giving. Get the popcord and sit back and watch.

    I somehow suspect that M$ will continue coming off as anti-human, anti-worker and just plain nasty.
  • Crocodile tears (Score:4, Informative)

    by adrenaline_junky ( 243428 ) on Monday September 05, 2005 @03:02AM (#13481652)
    I may be the only fool here who had no idea what "crocodile tears" are, but according to http://www.worldwidewords.org/qa/qa-cro1.htm [worldwidewords.org], "to weep crocodile tears is to pretend a sorrow that one doesn't in fact feel, to create a hypocritical show of emotion. The idea comes from the ancient belief that crocodiles weep while luring or devouring their prey."

    So now I know.
    • Re:Crocodile tears (Score:5, Informative)

      by DNS-and-BIND ( 461968 ) on Monday September 05, 2005 @04:05AM (#13481860) Homepage
      It's not a "belief", some species of crocodiles weep when they devour their prey. The tears help lubricate the swallowing.
      • What a stupid way for an animal that lives in a river (isn't their enough lubrication around 99% of the time anyway?) to lubricate their pray.

        Why not use salivary ducts inside the mouth, rather than make your vision blurred? Also, with an animal as long-snouted as a crocodile, I doubt the tars would get THAT far into the mouth anyway.

        More likely I expect it to be a spin off of some histamine-like hormone causing many similar glands, including tear and salivary glands, to respond.
  • What a concept... (Score:5, Insightful)

    by shmlco ( 594907 ) on Monday September 05, 2005 @03:06AM (#13481668) Homepage
    If a company wanted to penetrate a market of a billion or so people, it might be... work with me here... a halfway decent idea to hire a few locals here and there to help develop and localize your products for that market. Not to mention the sales, marketing, legal, administrative, and other types one might need to service said market.

    This is news?

    • Re:What a concept... (Score:3, Interesting)

      by Arandir ( 19206 )
      No, it's not news. What is news is this snippet from the blurbette: "it seems that the Chinese are not pleased with the number of jobs being moved to China...

      WTF! Who the hell cares about how pleased they are? You do want native people in China, but you don't *move* jobs there, you create jobs there! Expanding into a market doesn't mean you fire people in your old markets. Sheesh!
  • It's all logical. (Score:2, Interesting)

    by nich0las ( 912051 )
    If you are the Borg(hence your goal is to assimilate) you would make the same move as well. Why bother with a couple hundred million peons in America when you can consume billions in an Asian country? Statisticly and logically it's the smart move. It's all exponential. This little uprise from the Chinese is just their last struggle. They too will be assimilated. Rest easy little lambs, we will all soon become Borg.
  • If you start offshoring then people see the writing on the wall. H2B visas for immigrants by companies is just to drive down wages. Nothing else. Just a smoke screen about not having the skills.
  • by melted ( 227442 ) on Monday September 05, 2005 @04:28AM (#13481910) Homepage
    Not all of it, either. Mostly manual test, requiring little to no skill. For this kind of test, it sure would be a waste to pay someone in Redmond $60-70K/yr. Automated test, infrastructure, security, perf/stres, and all other critical test remains in Redmond so far.

    What was said above was only about China, though. Indian insiders seem to push real hard to get not only testing, but also development and program management to India. However, since they aren't (yet) an overwhelmin majority here, only low-impact work items go to India, so that if folks in India fuck it up (and they often do), we could fix the situation without slipping the schedule much. Overall, I'd say "split" development leads to worse code quality, but it's still a lot better than if all of it was developed in India.
  • they're sincere... (Score:5, Interesting)

    by cahiha ( 873942 ) on Monday September 05, 2005 @05:11AM (#13482000)
    I think Microsoft has had a very bad influence on CS job prospects (note: MCSE is not a CS job). However, the fact that they are now having to go to China is a case of being hoisted by their own petard; after they destroyed most of the interesting R&D jobs, they don't have a choice but to go to China. So, I think Gates's lamentations are sincere; he probably doesn't even understand what he has done to CS research in this country.

    In any case, even without Microsoft's destructive influence, Chinese high-tech workers would still be competing with US high-tech workes. And the Chinese government is fully within its rights to demand that any company doing business with/in China move jobs there--the US government is doing the same thing.
    • ... bah try being a cryptographer who refuses to work on DRM [e.g. has priciples]. I've received several offers recently [Sandisk being one of them] that are DRM related.

      MSFT may destroy CS but the industry as a whole is destroying itself.

      Simple reason: There is no craft anymore. Nobody does anything that is just "cool". Well at least nobody in a position to market new things. Any real innovation you see that is ALSO beneficial to people will come in the form of OSS projects.

      Tom
  • by brakken ( 607726 ) <phantomx&buckeye-express,com> on Monday September 05, 2005 @05:40AM (#13482080) Homepage
    If I was Bill Gates when the USA tried to take his wealth from him with that BS lawsuit I would of told them to screw off, fired everyone in the USA and moved my company to another country. Hopefully this happens and don't go blaming old Bill if it does. Why would you want to be in a Country trying to rape you for cash?
    • Where in the DoJ antitrust trial did the government ask for money? Their goal was the breakup of Microsoft into various companies, because that would have forced some actual competition in the marketplace.

      Microsoft doesn't have to compete on quality. All they need to do is sit on their butts and be happy that most organizations are locked into using their software because so much third-party software runs only on Windows. The antitrust trial was necessary, and American consumers were hurt when the DoJ se
  • Funny that....... (Score:4, Interesting)

    by mormop ( 415983 ) on Monday September 05, 2005 @12:09PM (#13483553)

    Last Wednesday I see this:

    China Daily covers an anti-Linux FUD campaign being run by the China Software Industry Association. [lwn.net] "Sun Yufang, a Chinese scholar who has long been researching Linux software, says most Linux developers cannot make a living under the current business model. Most of these developers 'either have died or have focused on other businesses in past years,' Sun says."

    And then today:

    Google Lawsuit Exposes Microsoft Offshoring Deal.

    I wonder if these two events are in any way related?

  • by hsuwh ( 262614 ) on Monday September 05, 2005 @01:30PM (#13484021) Homepage
    MS has been trying to build bridges to China for more than seven years: first in founding Microsoft Research China (now MSR Asia), a pure research facility that eventually became an R&D wing. Kai-Fu Lee, the former exec being sued for going to Google, founded MSR China in 1998 and came back to Redmond in 2000.

    Several years back Ballmer shook hands on a $100M outsourcing plsu $20M investment deal that senior management found it hard to live up to, and so they amended it to $55M in jobs and $60M in investments in Chinese IT.

    If you look at the Seattle Times article [nwsource.com], there are links to the court filings, including KFL's deposition, where he indicates that a major part of his work on MS's international business since coming back to the states, has been keeping MS from making blunders. These include making ill-advised promises that it hasn't been able to live up to, and (if it had) would have meant outsourcing at a rate that would strip American jobs, despite its assurances.

    Mirosoft's China strategy is starting to fall apart as its hiring has slowed stateside and it becomes evident that it's trying to have its cake and eat it too.

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