Tech giant Microsoft has decided to shut down its office in Pakistan, where it had been operating for the past 25 years. This decision has surprised many people connected to the country’s tech industry.
Office Closed, But Services Continue
According to Microsoft, their “operating model in Pakistan is being changed.” However, despite the office closure, services for local users will remain available. The company clarified that the purpose of this move is to enhance organizational efficiency and gain a competitive advantage.
Focus on Artificial Intelligence
This decision comes in the backdrop of Microsoft announcing a massive $80 billion investment in artificial intelligence. The company is now establishing data centers worldwide to train its AI models.
Why Was the Office Closed?
In an interview with BBC Urdu, a company spokesperson explained that this decision is part of a global strategy. The representative office in Pakistan, which consisted of only five employees, will be closed. However, licensing and other business activities will continue from Europe.
Office Closure, But Continued Commitment?
Pakistan’s Ministry of IT stated in a press release that Microsoft is still showing commitment to Pakistan, and this organizational change is part of a global model shift.
Public Reaction and Concerns
Former President Arif Alvi called the decision detrimental to the national economy. On social media, this announcement is being viewed as disappointing. Previously, companies like Careem and Uber had also shut down services in Pakistan.
Is the Office Closure Alarming?
Although the closure affects the company’s physical presence in Pakistan, tech experts say services and support will still be available through partners. However, it is evident that globally, companies are transitioning from “on-premise” models to SaaS (Software as a Service) models.
The closure of a local office by a company like Microsoft not only reflects a shift in business strategy but also indicates that tech companies are now prioritizing lower costs, higher profits, and digital services.
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