Apple backs out of Indian support and R&D venture (reason for yipeee??)

So Apple wont be going ahead with its R&D/Support center in Bangalore after all. I read the news on Apple Insider. But what’s interesting is the level of rejoice expressed in comments by many of that site’s readers at the Apple move, citing language and culture barriers as the reason for their happiness. Apple is also lauded by some readers for its preservation of American jobs. Hmmm..

I never used a support line answered by Indians, so I can’t make any judgement calls on quality here. But I am rather shocked at the ‘anti-outsourcing’ tone in many of the comments on Apple Insider.

AppleInsider – Apple pulls plug on India support center

Apple Computer is backing out of plans to establish a large R & D and support facility in India, according to reports.

The Bangalore-based facility, which was revealed by the India press in March, was rumored to employ as many as 1,500 people by the end of this year and grow to over 3,000 employees by the end of 2007.

Apple inducted the facility in April and began operations with a staff of 30 people under the name Apple Services India Pvt Ltd, according to the India Times. The Apple subsidiary was slated to expand rapidly into a massive tech support and software development facility.

But according to the report, on May 29 Apple announced plans to lay off all current employees as it was “reevaluating its operations and has thought of pulling back its Indian operations”.

Apple reportedly offered the employees a severance package of two months salary and plans to settle all claims on June 9.

“We have re-evaluated our plans and have decided to put our planned support centre growth in other countries,” said Apple spokesmen Steve Dowling.


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2 Responses to “Apple backs out of Indian support and R&D venture (reason for yipeee??)”

  1. Basem Says:

    A classic case of an unanticipated good business sense reaping the very fruits of globalization that was supposed to be exclusive to the traditionally “prevailing” economies.

    Ever since the emergence of IP telephony & cheap satellite backhauling of bulk telephony; the establishing of call centers overseas (really, India with few spills here and there) became way too feasible.

    I think 70% of call center operators jobs in the UK migrated to India, to the point that one bank (I think its National Westminster) started promoting its customer care call center as being UK-based & handled by Brits to create a differentiating niche perhaps!

    As for us in the middle east (excluding occupied Palestine), I’m only aware of the multi-million dollar regional support center being established by Huawei in Egypt.

    Hua who? Huawei (pronounced HuWaWi) is the fastest growing manufacturer of mobile networks infrastructure (the cheapest as will, it’s a Chinese company). Be thankful, your cheap Umniah rate plans are –partially- courtesy of their peanuts-costing network elements!

    This is a great asset for Egypt, for it will host hundreds of technical operators who will provide hardcore technical support to network operators, along with an R&D center.

  2. Muhammad Arrabi Says:

    “We have re-evaluated our plans and have decided to put our planned support centre growth in other countries,” said Apple spokesmen Steve Dowling.

    other countries?

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