According to an Indian newspaper, Apple has pulled the plug on plans to outsource its support operations to India, in another sign that the industry's love affair with Indian support may be beginning to cool.
Earlier this year, reports of a massive investment in India by Apple suggested that the company would hire "as many as 1,500 people by the end of this calendar year, and have a total of 3,000 people by the end of 2007 in its Bangalore support facility", Apple's first tech support centre outside the USA.
The total cost of the move was expected to be a US$ 14 billion ($19 billion), including a 28,000 m/sq campus.
Now The Times of India reports Apple's change of heart.
Apple, as the newspaper describes it, "is pulling out its software development and support operations in India." The paper quotes an Apple spokesman who said, "We have re-evaluated our plans and have decided to put our planned support centre growth in other countries."
APC contacted Apple Australia, but Marketing Director Rob Small said, "we're not going to comment."
At the end of 2004, Dell also returned its tech support operations to the USA. Forbes Magazine regards (registration required) Dell's Indian adventure as a "big" factor in the company's current slump. Personal and business customers had complained about language difficulties and problems getting hold of senior-level tech reps.
Despite rethinks by Dell and Apple, revenue from the call centre business in India continues to grow. Indian Research Company NASSCOM estimates that revenue grew by 37 percent to US$6.2 billion ($ 8.2 billion) in India in the year ending in March 2006.
With big corporate withdrawals and Africa emerging as a strong challenger for the call centre market, next year may not look as good.