Swiss investment bank UBS is planning to set up an offshore back office processing centre in Hyderabad, India.
According to a Reuters report, UBS has signed a memorandum of understanding with the Hyderabad government to establish a new centre. Construction has begun on the new facility, which is expected to be operational within 10 months.
The bank already outsources a number of IT and back office functions to third party firms in India.
A UBS spokesman confirmed plans to set up the Hyderabad centre but said it was too early to say how many people would be employed there.
Earlier this year HSBC, which already operates four offshore centres in Asia, said it planned to open a fifth in Calcutta in November. Other banks, including Goldman Sachs and Bank of America, are also extending and expanding operations in cheaper overseas locations like India.