IDG News Service - Bank of America Corp. is setting up a wholly owned subsidiary in Hyderabad, India, that will process some of its back-office operations.
The Continuum Solutions Pvt. Ltd. subsidiary will have about 500 staffers by the end of this year, with up to 1,000 employees by the middle of next year, the Charlotte, N.C.-based bank announced.
The subsidiary will help the bank to remain competitive in the global market and to grow in the U.S. and abroad, said Rahul Samant, managing director of Bank of America's Global Delivery Center and director of Continuum Solutions.
Bank of America is the latest multinational bank to outsource back-office operations to India. The bank already outsources software development work to Indian software companies such as Infosys Technologies Ltd. in Bangalore and Tata Consultancy Services in Mumbai.
U.S. banks, brokerage firms, insurance companies, mutual fund and other financial services firms are planning to relocate more than 500,000 jobs offshore, representing 8% of their workforces, over the next five years, according to a study conducted last year by the management consultancy A.T. Kearney Inc. in Plano, Texas.
Continuum Solutions is part of Bank of America's Global Delivery Center of Expertise, which is responsible for all of the bank's offshore outsourcing activities. The back-office support provided by Continuum will be a mix of transaction processing and high-end complex processing.
See more coverage of this issue in our Outsourcing Center.
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