And you thought Apple was going back…

By Shyamanuja Das, June 2, 2006 3:09 AM

When Apple Computer opened a Support Center in Bangalore, it was apparently following the Dell model, in letter and spirit. It hired ex-head of Dell’s Indian operations, Dell International Services, Mohan Kharbanada, and a few other executives with a “Dell” experience to kickstart the operations.

Barely three months after that, the maker of iPod decided to shut off the subsidiary, Apple Services India Ltd. As soon as Indian newspaper, Times of India reported it, the news was picked up by other media and bloggers alike, with fancy headlines like Apple Cancels Plans for Offshore Support in India, Apple Pulls Out of India, Apple Leaves India, Apples Steps Back. In many anti-offshoring blogs, the voice was that of rejoice…

The truth is a little different.

It reminds one of the November 2003 “celebrations” over Dell pulling back from India. Dell, barely 6000 something at that time, today has close to 15,000 people supporting its products from India. Just about a year back, while reporting on the Dell’s India plans, we said it all with a headline, And You Thought Dell was Going Back…I just borrowed the headline from my colleague’s article, published in April 2005 issue of Global Outsourcing (published by Cyber Media and one of the predecessors of Global Services).

And how aptly it fits.

While the bloggers are yet again rejoicing about Apple’s “pullback”, the fact is that Apple has not voted against India or offshoring. At least, not yet. Instead, it has voted for outsourcing.

I doubt if many know that it is not three months back that Apple started offshoring to India. The company had started outsourcing to a third party Indian service provider, Transworks, way back in 2004. And that contract still stands valid. Simply speaking, Apple has not left India. It has just favored one offshoring model over another.

Leave a Reply

Panorama theme by Themocracy