Microsoft, the world's leading technology organization, has decided to close its office in Pakistan, which has been operational in the country for over 25 years. This has come as a surprise to those in the country's technological industry.
The office closed, but service continues as before
According to Microsoft, it is shifting its operating model in Pakistan. Nevertheless, even the closure of the office will not deprive local customers of the services offered. The company justified the move as a means to enhance organizational performance and gain a competitive advantage.
Focus on Artificial Intelligence
The step was made after Microsoft announced an investment of a staggering $80 billion in artificial intelligence. The corporation is currently establishing data center's worldwide to train its AI models.
What is the reason for closing the office?
A spokesperson for the company told BBC Urdu that this decision is part of a global strategy. It will close its representative office in Pakistan, which currently employs only five staff members. Nonetheless, licensing, among other commercial operations, will still be done in Europe.
Closed, but commitment intact?
In a single statement, the Pakistan IT ministry explained that Microsoft continues to demonstrate a commitment to Pakistan. This is an organizational change that encompasses a global model.
Bank Reaction and Concerns
Former President Arif Alvi termed this move as detrimental to the country's economy. Social media is also terming this announcement as disappointing. In the past, companies such as Careem and Uber have also discontinued their operations in Pakistan.
Is office closure a concern?
Although the office shutdown is already affecting the physical presence of a particular company, technology experts assert that services and support will still be available through partners. Nonetheless, there is no doubt that companies worldwide are transitioning from on-premise generators to SaaS generators.
The closure of offices by a corporation like Microsoft can represent not only a new business model but also the fact that the technology industry is shifting its focus to prioritize low prices, big profits, and online services.
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