Bank of America is setting up a wholly owned subsidiary in India which will process some of the bank's back-office operations.
The Continuum Solutions subsidiary will have about 500 staff by the end of this year, with up to 1,000 employees by mid-2005, said the bank.
The subsidiary will help the bank remain competitive in the global market and help it to grow in the US and abroad, said Rahul Samant, managing director of the bank's Global Delivery Centre 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 in Bangalore and Tata Consultancy Services in Mumbai.
US 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 AT Kearney.
Continuum Solutions is part of Bank of America's Global Delivery Centre 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, as well as high-end complex processing.
John Ribeiro writes for IDG News Service