Computer giant Microsoft has signed a $170-million, five-year contract with India's HCL [Get Quote] for outsourcing work for its online business productivity suite.

HCL will provide 600 employees to support the contract and nearly 250 workers have already begun work on the project.

Microsoft has not said whether this contract is to replace any existing agreement it has in India, or if this deal is an expansion of its current outsourcing scope.

Despite the recent job cuts, Microsoft has been expanding its online services business and has recently announced plans to make its business productivity online suite, a software-as-a-service offering, available for trial and purchase in 19 countries.