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TCS Bags Citigroup BPO|
- By CXOtoday Staff, Oct 08, 2008 1418 hrs IST
- Tags : Citigroup, Citigroup Global Services Limited CGSL , Tata Consultancy Services TCS , BPO
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Tata Consultancy Services (TCS) has acquired Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for approximately $505 million, subject to closing adjustments.TCS will imbibe all citi employees into its fold.
In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of $2.5 billion over a period of 9.5 years. TCS currently provides application development, infrastructure support, help desk, and other process outsourcing services to Citi.
CGSL has more than 12,000 employees located in India and expects to generate revenues of approximately $ 278 million in 2008. The parties expect to close the transaction in the fourth quarter of 2008.
S. Ramadorai, CEO and MD, TCS said: "This is a landmark acquisition for TCS, helping us to acquire new capabilities in the banking domain. This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward."
Don Callahan, chief administrative officer of Citi said: "This is a great transaction that benefits all parties - Citi, our customers, our employees and TCS. Our customers require access to increasingly complex processing solutions and this relationship will achieve a 'best in class' technology model that capitalizes on both CGSL's expertise in financial services and TCS's expertise in process optimization. TCS will offer CGSL stronger growth potential and superior continued services to Citi clients around the world. This transaction is expected to help reduce operating expenses related to business processing and will allow us to focus on our core financial services competencies."
N. Chandrasekaran, COO and executive director of TCS said, "The acquisition of CGSL has two immediate strategic benefits for TCS. It gives us the ability to offer a comprehensive end-to-end, domain-led solution for business operations of large financial services institutions. It also positions us well to create banking processing platforms by integrating our products and process capabilities." He added: "We welcome CGSL professionals into the TCS family, where they will be able to participate in the company's new growth endeavours."
Related links:
Citi Brings Commercial Cards to India
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