Swiss investment bank UBS has announced plans to outsource its IT and back-office operations to Hyderabad, India. The new offshore center will join a number of similar operations in the city.
The bank has signed a memo of understanding with the government of India to establish the new center which, according to a report by Reuters, is expected to be operational within a year.
Construction of the center is already underway according to Hyderabad’s IT secretary, K Ratna Prabha, who confirmed that the center will be operational within nine to 10 months.
A spokesman for UBS said it was too early to know how many workers the center would eventually employ but did note that the bank already out-sources IT and back-office operations to third parties.
UBS is the latest in a string of multinational banks to have back-office operations in Hyderabad, companies including HSBC, IBM and Bank of America Corp., all have similar operations in the city. Multinationals such as these are increasingly outsourcing their back-office operations to low wage countries in an effort to reduce costs.