Offshore relocation of service centres is tempting but the decision should be based on more than cost. Ashleigh Lezard reports.

Everyone is doing it. Even Microsoft, the most American of companies is doing it. Moving offshore is cost effective and, in these difficult economic times, even the richest companies in the world want to save money.

Microsoft recently announced that it plans to expand its operations in India. The company, whose Windows operating system and Office desktop software run on more than 90% of the world’s PCs, has a small software development centre in Hyderabad. On its website, Microsoft lists a large number of vacancies, many requiring five years’ experience, understanding of multiple computer languages and degrees in computer science. It now plans to develop a customer support centre in Bangalore. It is reported that initially it will hire 150 people but the centre can easily be scaled up to 1000-strong in the next two years.