The Continuum Solutions Pvt. Ltd. subsidiary's operations will go live this spring. A BofA source tells GlobeSt.com the subsidiary has leased 75,000 sf in the Mindspace complex under development by Raheja group. More space may be have to be leased, though, as the subsidiary expects to have about 500 employees by the end of this year and as many as 1,000 by the middle of 2005.
Bank of America, the second largest bank in the nation, already outsources software development work to Indian software companies, including Infosys Technologies Ltd. in Bangalore and Tata Consultancy Services in Mumbai. It is not alone; major US companies have been using offshore operations to save money for well more than a decade, however; the incidence of such operations in increasing.
According to a study conducted last year by the management consultancy A.T. Kearney Inc. in Plano, TX, financial services firms are planning to relocate 8% of their workforce--more than 500,000 jobs--offshore over the next five year. A more recent study by Forrester Research predicts some 3 million jobs will be shifted offshore over the next decade, which translates to some 750 million sf of office space.
BofA says the number of US job losses that will be related t the new Indian subsidiary is now yet known, as the company has not decided its exactly which functions will be moved and how much of the move will be existing jobs located elsewhere and how much will be new jobs. 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.
A bank spokesperson tells GlobeSt.com that its response to critics of its off shoring of jobs is that "our customers, associates and shareholders expect us to run efficiently, effectively and profitably, and this will allows us to remain competitive in a global market and grow both at home and overseas."
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