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Citi to sell its India back office to TCS for $505 Million
By siliconindia
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Thursday, 09 October 2008, 23:27 IST
Hong Kong: In a deal worth $505 million, U.S. financial major Citigroup plans to sell its Indian back office operation to Tata Consultancy Services, India's software services exporter, sources close to the development said. They added that an announcement in this regard is likely to be made soon.
A TCS spokeswoman said the company had called a news conference at its Mumbai headquarters at 0900 GMT and denied further comments, while a Citigroup spokesman declined to comment.
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, which employs 12,000 people, 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, the website said.
In August, the Economic Times newspaper citing a source reported that a deal would guarantee Tata Consultancy business from Citi for five years.
In July last year, India's software services exporter Infosys Technologies signed a $250 million outsourcing contract with Royal Philips Electronics and bought three of the Dutch firm's back-office centers.
