Google and Microsoft looking for pastures new

Archrivals Google and Microsoft are both looking to take their techies to pastures new.

Microsoft, alongside Chinese firm Langchao Worldwide Services, has formally announced the creation of an outsourcing centre at Langchao premises in Beijing.

The offsite development centre will see the pair working together on the development of software applications and, according to Langchao, will allow the Chinese firm to "substantially enhance [its] capabilities to perform outsourcing orders for Microsoft" and boost the pair's efficiency when working together.

The two companies signed a memorandum of understanding at the end of 2004 and since then have collaborated to work on .NET platforms, as well as developing both ERP and other software applications.

Microsoft has increasingly been looking to step up its partnerships in developing markets. The Redmond giant recently created a joint venture with Indian outsourcing firm TCS and three Chinese tech firms.

While Microsoft watches the ink dry on its deal with Langchao, rumour has it Google CEO Eric Schmidt may be similarly ready to put pen to paper, with Moscow in his sights.

According to a report in The Moscow Times, Google will be setting up tech operations in St Petersburg, taking residence in a soon-to-be-built IT park and partnering with a Russian university. Should Google take up residency, it could create some 3,000 jobs.

The Russian deputy IT and communications minister, Dmitry Milovantsev, is quoted as saying that the government had met with Google execs, who appeared enthusiastic about the Russian move.

A Google spokeswoman would neither confirm nor deny the search giant was interested in a change of scenery.

"We are very interested in Russia and are working to learn more about this important market. We will continue exploring business opportunities in Russia," she said.