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Wipro on its toes to peg Citigroup's $150 Million deal
By siliconindia
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Wednesday, 05 November 2008, 23:26 IST
Mumbai: The Indian IT giant Wipro is on its toes to peg the $150 million acquisition deal with New York based Citigroup's subsidiary Citi Technology Services (CTS). Formerly called as Citos, CTS is responsible for technology and infrastructure outsourcing.
There are other technology vendors who are eyeing the deal like IBM, TCS and Infosys. TCS has also earlier acquired the financial service company's BPO arm Citigroup Global Services (CGSL) for $505 million. But in the current deal, it is Wipro who can be seen to pursue it aggressively, as acquisition of the firm will strengthen its infrastructure and facilities management business. Along with strengthening the business, it will also help the IT service firm to bag the financial institute as a key client. Moreover, witnessing Citigroup's assurance of a long-term revenue contract with TCS after the acquisition, there is a possibility for similar commitments towards Wipro if the deal is stroked.
The U.S. firm's opting for selling some of its Indian centers are a part of its repositioning of the business opportunities to cut its costs. "Higher credit costs were mainly driven by continued deterioration in the credit environment in India, where the business is being actively repositioned to reduce costs and mitigate losses," says a filing by Citigroup.
However, none of the companies have revealed anything regarding the deal. "We do not react to market rumors and speculations," said a Wipro spokesperson in an email response, as reported by Economic Times.
