Tata Consultancy acquires Citigroup BPO

Another acquisition made news today !

Tata Consultancy Services (TCS) is acquiring Citi’s Indian BPO through a cash deal of US Dollar 505 million.

Citi’s Indian back-office, Citigroup Global Services Limited (CGSL), is a captive unit and one of the largest providers of Business Process Outsourcing Services within the Banking and Financial Services sector to Citi’s consumer, corporate and global wealth management businesses world wide.

CGSL is said to have more than 12,000 employees in India and expects to generate a revenue of US Dollar 278 million in 2008.

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Apart from this deal, Citi has also reportedly entered into an agreement with TCS to provide through CGSL, services to Citi and its affiliates aggregating US Dollar 2.5 billion over a period of nine and a half years. Which in effect means that this revenue is assured for TCS through this deal.

And not to forget the addition to domain expertise of TCS.  Quoting Mr. S. Ramadorai, CEO & MD of TCS:

“This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward.”

Source:
» TCS to buy Citigroup’s arm in India for 505 million dollars (AFP)
» TCS says buys Citi’s India BPO arm for $505mln (Reuters)
» TCS to acquire Citi unit for Rs 2417 Crore (Hindustan Times)
» Citi selling India back office to TCS (Economic Times)
» India’s TCS says revenue from Citi deal in Q4 (Reuters)