Xchanging, a UK-based provider of processing services to the financial services industries, has signed an agreement with the State Government of Karnataka, India, to build an advanced carbon BPO center in Shimoga, a tier three town north-west of Bangalore.

According to Xchanging, the new center will have an initial capacity of 1,000 people with an option to scale to a 2,000 seat center. The building will be a zero energy building, taking advantage of natural ventilation and lighting and an energy efficient design.

Construction on the site is anticipated to begin within the next two months and is expected to complete in 18 months from commencement.

The new center in Shimoga will be Xchanging’s fourth major processing center in India. Xchanging employs over 3,400 people in India and has three of its top 10 global processing hubs in Bangalore, Gurgaon and Chennai. The company set foot in India in the year 2003. In 2008 Xchanging announced the acquisition of Cambridge Solutions, listed on the Indian stock exchanges.

David Andrews, CEO Xchanging, said: “India is the undoubted global BPO powerhouse. Today more than one-third of Xchanging’s workforce is Indian, complementing our strength in the UK, Germany and the USA. We have invested in India for the engineering excellence that the country has to offer and the opportunities that exist in this fast growing economy. Shimoga is a landmark project. It paves the way to the yet untapped semi-urban potential of India. We are grateful to the Government of Karnataka for their support.”