Indian IT services and outsourcing behemoth Tata Consultancy Services (TCS) this week announced that it has reached an agreement to acquire all of Citigroup’s Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of the financial services company for approximately 505 million.
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 USD 2.5 billion over a period of 9.5 years. The agreement builds upon the existing relationship between Citi and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi.
The acquisition broadens TCS's portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) sector. TCS's enhanced scale and expertise will provide service improvements to Citi and Citi's customers.
"This is a landmark acquisition for TCS, helping us not only acquire new capabilities in the banking domain but also underscoring the importance of our long-term, sustainable relationships with our large customers, including Citi," said S. Ramadorai, CEO and MD, TCS
"This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward."
CGSL is one of the largest providers of business processing outsourcing services within the Banking and Financial Services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citi's consumer, corporate and global wealth management businesses world wide. CGSL has more than 12,000 employees located in India and expects to generate revenues of approximately 278 million in 2008.
"This is a landmark acquisition for TCS, helping us not only acquire new capabilities in the banking domain but also underscoring the importance of our long-term, sustainable relationships with our large customers, including Citi," said S. Ramadorai, CEO and MD, TCS
"This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward."
TCS has provided IT services to Citi since 1992, delivering IT and business processing outsourcing services to Citi across its operations in North America, Europe, India, Japan, Singapore and the rest of Asia Pacific.
The parties expect to close the transaction in the fourth quarter of 2008. |
