TCS buys Citi BPO - Biggest Tech News Of 2008

[VelMurugan]

TCS buys Citi BPO

In one of the largest deals in the Indian BPO sector, IT major Tata Consultancy Services, clinched a deal to acquire Citigroup Global Services Ltd (CGSL), a large captive BPO of Citibank operating out of India, for $505 million (around Rs 2,425 crore).

In addition to the sale, Citigroup which is shedding its non-core assets worldwide, signed an agreement with TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates for an aggregate amount of $2.5 billion over a period of 9.5 years.

Citigroup Global Services has around 12,000 employees in India and expects revenues of approximately $278m in 2008.

The acquisition broadens TCS's portfolio of end-to-end IT and BPO services in the global banking and financial services (BFS) sector.

CGSL provides end-to-end process management across the BFS spectrum and a broad array of services to Citi's consumer, corporate and global wealth management businesses worldwide.

Citigroup Global Services, the India back office unit, began as a business processing arm for Citi India in 1992 and expanded to serve Citi's global operations in 1998, according to its website. The unit operates out of seven facilities across Indian cities and offers back office services to Citi's consumer, corporate and global wealth management entities in 50 countries.

Source : IndiaTimes