Tata Consultancy Services (TCS) has acquired Citigroup’s back office operations in India in a deal worth USD 505 million in cash.
Citigroup which has been reeling from over sixty billion dollar loses due to credit related write downs, is striving hard to sell of its non-core assets.
Expressing his enthusiasm with the deal S. Ramadorai, CEO of TCS said “This deal sets the stage for a lot of future revenue”
Incidentally TCS has promised to absorb all twelve thousand or so employees of Citigroup’s back office operations in India and believes that the acquisition falls right into its current scheme of things.
The Citigroup’s outsourcing unit has been on the block from quite sometime since it got de-listed from the Indian stock exchanges in 2004 and large IT majors like IBM and Capgemini were reportedly in the race to acquire it.
In a related development TCS has also signed a deal worth USD 2.5 billion with Citigroup to provide outsourcing services over a period of nine years.