IBM has announced plans to expand its Indian BPO business, having significantly cut its US and European workforce in 2009. It has been reported that the company will increase its Indian capacity by at least 5,000 people this year.

The IT giant currently operates outsourcing facilities in a number of Indian cities, including Mumbai, Kolkata, Pune, Hyderabad and Gurgaon, and indicates that any expansion will likely take place in existing locations. The company hopes to capitalise on an anticipated rise in demand for BPO services during the coming year, it said in a statement.

Selby Mascarenhas, IBM Poland’s senior advisory consultant, commented, "We plan to focus more in the services sector by opening more BPO centres in India."