Software support provider Software Spectrum is cutting 350 jobs over the next few months as a result of a loss of a support deal with Microsoft.

Software Spectrum, a subsidiary of Level 3, notified its employees on Monday that it will be reducing its Spokane workforce from July 11 to the end of September as a result of a "loss of a major contract," confirmed Alison Eldred, human resources manager.

Eldred said that Software Spectrum will no longer provide technical support services for any Microsoft products after September.

A Microsoft spokeswoman said that Microsoft had been exploring the possibility of "international growth" with Software Spectrum for months. But within the next five months, Microsoft has decided to transition product support formerly provided by Software Spectrum to other vendors working offshore. She declined to offer further details or names of specific vendors.

Eldred said that Software Spectrum currently offers "an offshore solution," but that Microsoft didn't consider it "viable."

"Microsoft is sending the remainder of their support to Canada and India. The remaining American techs supporting Office setup, Excel, Outlook, Works, Money and others are all losing their jobs as a result of this," said one source, claiming familiarity with the situation. The source added that 353 people are losing their jobs.

In addition to providing technical support services for Microsoft, Software Spectrum over the years also had acted as a fulfillment house for Microsoft volume-licensing contracts. In recent years, Microsoft's decision to work directly with customers to fulfill their enterprise licensing agreements had negatively impacted Software Spectrum's business, according to the company's financial statements.

Company watchers have been watching Microsoft closely to see when and if the company might move some of its development and support presence offshore to cut costs.

In February, a Washington state union obtained and made public a Microsoft Windows executive's presentation from last July which suggests that Microsoft move some of its software development work to India.