US bank Wachovia is establishing an offshore outsourcing operation in India under a seven year agreement with BPO firm Genpact. Financial terms of the deal were not disclosed.
Wachovia says it will work with Genpact to evaluate various processes at the bank over the next several months, with the expectation that some work will be shifted offshore in the second quarter of 2006.
Peter Sidebottom, director of corporate development and strategic initiatives at the bank, says the agreement enables the bank to reduce costs.
"As we evaluate opportunities to become more efficient, we will continue our thoughtful and deliberate approach to offshoring decisions and implementation," he adds.
GenPact - which is a joint venture between GE and private equity firms General Atlantic and Oak Hill Capital Partners - provides outsourcing and offshoring services to the banking and finance, insurance, manufacturing, transportation and business services sectors.
In January, Wachovia projected savings of up to $1 billion during the next three years under plans to shed up to 4000 jobs. In June the bank notified 3000 of its US IT staff of its intentions to outsource technology work to one of three offshore factories in India.