Mphasis, the fifth largest BPO operator in India, is opening a centre in Colombo to offer legal, finance and accounting services.

The centre, which will be operational from next year, will recruit an additional 600 people in the first year to join the company’s 34,000 existing employees and then a further 2,000 in the subsequent three years. The expansion is said to come as a sign that the economic downturn is ending, officials said.

The international BPO industry has been hit by a global slump, with much of the industry in Europe and North America drying up due to inward looking policies forced upon the private sector by governments to save local jobs.

Gopinathan Padmanathan, president of applications at Mphasis said: "We have a fairly well established global footprint and with the Colombo office we are expanding it further. After completing the due diligence Mphasis were really confident."