Microsoft is closing its operations in Pakistan, marking the tip of a 25-year presence within the South Asian nation.
The Redmond-based firm on Friday instructed TechCrunch that it’s altering its operational mannequin in Pakistan and can now serve its clients by means of resellers and “different carefully positioned Microsoft places of work.”
“Our buyer agreements and repair won’t be affected by this transformation,” a Microsoft spokesperson mentioned in an emailed assertion.
“We observe this mannequin efficiently in quite a few different international locations around the globe. Our clients stay our prime precedence and might count on the identical excessive degree of service going ahead,” the spokesperson added.
The choice will affect 5 Microsoft staff in Pakistan, in response to sources who talked with TechCrunch; they add that Microsoft didn’t have any engineering assets in Pakistan, not like India and different rising markets, and had its staff promote Azure and Workplace merchandise within the nation.
The closure comes amid broader firm restructuring. Pakistan’s Info and Broadcasting Ministry described the Redmond firm’s exit “as a part of a wider workforce-optimization program.” Earlier this week, the corporate decreased its workforce by 4%, or about 9,000 roles globally.
To organize for this transition, Microsoft had shifted licensing and business contract administration for Pakistan to its European hub in Eire over the previous few years, whereas licensed native companions have dealt with day-to-day service supply, the ministry mentioned.
“We are going to proceed to interact Microsoft’s regional and world management to make sure that any structural modifications strengthen, reasonably than diminish, Microsoft’s long-term dedication to Pakistani clients, builders and channel companions,” the ministry famous.
Former Microsoft govt and its first lead in Pakistan Jawwad Rehman reported the corporate’s exit in a publish on LinkedIn on Thursday.
“That is greater than a company exit. It’s a sobering sign of the atmosphere our nation has created . . . one the place even world giants like Microsoft discover it unsustainable to remain. It additionally displays on what was achieved (or not achieved) with the robust basis we left behind by the next workforce and regional administration of Microsoft,” Rehman posted.
The exit comes simply days after Pakistan’s federal authorities introduced its plan to offer IT certifications from tech corporations together with Google and Microsoft to half one million youth. The transfer stands in notably stark distinction to Google, which disclosed a $10.5 million funding within the nation’s public training sector final yr and can be contemplating Pakistan as a market to provide half one million Chromebooks by 2026.
Microsoft’s exit displays broader challenges in Pakistan’s tech sector. In contrast to India and different regional markets, Pakistan has not established itself as a serious engineering outsourcing vacation spot for Western tech giants. As an alternative, the nation’s tech ecosystem is dominated by two major gamers: native corporations which have developed their very own engineering capabilities, and Chinese language corporations like Huawei, which have gained vital market share by offering enterprise-grade infrastructure to telecommunications corporations and banks.
Pakistan’s Info and Broadcasting Ministry didn’t reply to requests for remark.
