Microsoft Research should also track how far the individual is working away from the main office of his company, because that has far more of an effect on bugs than any biometric reading. I recommend that they develop a special laser and a series of geostationary satellites and ground repeater stations. The total round trip time of the laser pulse will be a measure of how buggy the developer's code is.
1) Microsoft Research is wasting an awful lot of money to conclude that the reason why Microsoft's software is so terrible is that it's being written by outside companies in India.
2) Microsoft's well-paid American and European programmers are producing good or at least above average code, as would be expected.
3) Quality evaporates when they use foreign and H1B workers, who are educated in substandard universities, inexperienced in engineering, and/or do not have English superliteracy. [I've discussed elsewhere that basic language literacy is not enough to be a good programmer---you need to have enough language expertise to communicate without any ambiguity whatsoever to write good code because of the essential nature of interpersonal communication. By the same token, if you're writing software for Indians speaking Hindi your entire team should be Hindi-speaking Indians.]