Apple pulls planned support center out of Bangalore, India

“The company that redefined the way we listen to music has decided to call it quits in India. Apple, known for its popular iPods, is pulling out its software development and support operations in India,” R Raghavendra reports for the Times of India. “The company had commenced operations in April and hired about 30 people for its subsidiary, Apple Services India Pvt Ltd.”

“At a meeting on May 29, Apple announced its decision to lay off all its employees. Apple officials told them that ‘the company is revaluating its operations and has thought of pulling back its Indian operations.’ Apple is giving these employees a severance package of two months salary. It will settle all claims on June 9. When contacted, Steve Dowling, an Apple spokesperson, said, ‘We have re-evaluated our plans and have decided to put our planned support centre growth in other countries.'” Raghavendra reports.

Full article here.
[Thanks to MacDailyNews Reader “matt” for the heads up.]

“According to a sacked employee, the company had told them that its operations would now head back to the US,” CyberMedia News reports.

Full article here.
[Thanks to MacDailyNews Reader “m.” for the heads up.]

[UPDATE: 9:30am EDT: Added CyberMedia News report info.]

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Related articles:
Apple CEO Steve Jobs postpones Bangalore visit until September – April 04, 2006
Apple says Bangalore facility won’t cause any existing American job cuts – March 17, 2006
Apple to send Jobs to Bangalore in April – Tuesday, March 14, 2006
Apple to hire 3,000 for massive technical support facility in Bangalore by 2007 – March 09, 2006

33 Comments

  1. Interesting that it doesn’t say anything about bringing this back to the US. They are probably going to pick a different country. It wouldn’t surprise me. I have some experience with offshoring and the cost savings are simply too big to ignore.

    I do hope that they continue US based support

  2. Hope that includes support phone calls. Leave that to microshaft and dull. Ever place a tech support call to either of those two?? What a nighmare / horror show talking to tech support in india. Good move Apple.

  3. Everyone is getting this wrong. Apple may be stopping their OWN plans, but Apple will still employ and increase their contract with Transworks in Bangalore. Indian tech support will still go on, but as contractors, not as Apple employees in India.

  4. Apple managers told the terminated workers that they were pulling the support function back to the U.S. As far as the Indian workers, seems to me Apple is being quite generous providing TWO months severance for workers barely employed for just ONE month. This was probably a costly mistake, but Apple must have figured it would become even costlier (in either money or impact on quality) to stay in India. If Indian workers could have performed this function cheaper but at similar quality, they should have stayed in India.

  5. The company I temp for moved a lot of it’s HR functions (i.e. paperwork processing) over to India within the last six months. Things that I could do before in five minutes now take five hours because they don’t know how to do things yet and have to ask me tons of questions. I totally see the cost savings in that!

    Magic Word – says as in “The company says this is a benefit!”

  6. My company (super-mega-corp) is seeing little benefit from sending positions to India regardless of the fact a large percentage of our IT people are Indian.

    The problem is that India is India, not corporate headquarters. There’s too much separation in business practices and culture. I can only speak from experience, but the support roles we send over there are still supported over here, except now we have to train those people as well. Due to support structure decisions for cost-cutting reasons, the technicians doing support are not at all familiar with the systems they are supporting. They can us in the US for help.

    What’s the point? There’s probably many reasons to have outsourcing to India, but it doesn’t work in all situations. Apple, being a company that tries hard to make a better experience for the consumer, decided that they should pay more for support US and European customers are used to culturally.

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