Microsoft is outsourcing its internal IT to Indian company Infosys.

The worldwide deal covers offices and other facilities in 450 places in 104 countries. Infosys will provide help desk services and desktop, infrastructure and application support.

Infosys is working with Unisys on the desktop support contract using a multi-language call centre.

Infosys said it hopes the move to Windows 7 will help lower costs for Microsoft.

The press release is here.

The deal is based on an outcome-based pricing model which should give Microsoft flexibility in managing its own IT costs.

India has long played a major role in Microsoft's software development - Amit Chatterjee, Microsoft's general manager for Visual Studio recently claimed about a quarter of Visual Studio was of Indian origin and 15 per cent of the development work for the new version of VS 2010 came from the country. ®