The Baggies secured the services of Diego Lugano from Paris Saint-Germain last week, a move that has been praised by Sweden international Olsson.
"I welcome more additions to the team and the competition. It always makes you try harder," he told the club's official website. "Before every season, it's good to have a few new faces.
"Competition for places is what develops you as a team and an individual. It's vital for the team and hopefully we can get a few more faces in.
"Lugano is a player I know about. His CV is brilliant. I think he can be a good addition to our team."
Nicolas Anelka also joined the club on a free transfer this summer.