IT Staffing Report: Sept. 10, 2015

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Microsoft memo updates external staff policy

Microsoft Corp. sent a memo to suppliers updating changes to its policies affecting suppliers and external staff in the US. The memo, issued by Chief Procurement Officer Mike Simms, also aims to provide context on why it is making the changes, according to the company.

However, The Seattle Times reports the software giant is trying to allay fears of layoffs when its new contractor policy is implemented in January, but some companies that supply workers to Microsoft are skeptical.

Microsoft previously announced changes limiting those who work for the company in the US through vendors and temp agencies to 18 months of access to Microsoft buildings and corporate networks, after which they will be required to take a six-month break from access.

The memo’s listed policy changes:

  • For work that is not managed under outsourced arrangements, Microsoft limits assignments to a maximum of 18 months for those who have access to its systems and/or work on Microsoft premises and requires a six-month break before external staff can regain access to Microsoft’s buildings or corporate networks.  External staff who have had continuous access since the policy went into effect on July 1, 2014, will reach the 18-month tenure limit on Jan. 1, 2016.  People who began assignments later will hit the tenure limit later too.
  • If there is an ongoing business need, someone who has hit the 18-month limit can continue to perform services for Microsoft, but without corporate network or facilities access.
  • Microsoft is instituting a limited “extension” process that allows Microsoft business leaders to grant a six-month extension of building and network access for individual external staff assignments where there is a critical business need.  This would allow those people to have building and network access for up to an additional six months before the required break.
  • Work that is managed under outsourced arrangements is not subject to the 18 month tenure limit. There is no restriction on length of assignment for these arrangements. The length of the assignment is driven by business need, as determined by Microsoft. It is in the process of assessing whether particular external staff engagements qualify as outsourced arrangements, and believes the significant majority of work ultimately will fall in to this category.
  • In March, Microsoft also announced it will require anyone doing work at a Microsoft supplier on behalf of Microsoft to be an employee of that supplier, and not an independent contractor.

The full memo is available here.