BofA Pushing Some Back-Office Operations to India

HYDERBAD, INDIA-Charlotte, NC-based Bank of America has signed a MoU with the Andhre Pradesh government regarding the establishment of a wholly owned subsidiary here that will hire hundreds of employees to handle some of the bank’s transaction processing functions.

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.