Tata Consultancy may buy Citi's India BPO arm
Wednesday, 20 August 2008
MUMBAI, Aug 19 (Reuters): Tata Consultancy Services is close to acquiring Citigroup's captive backoffice unit in India for about US$500-$550 million, the Economic Times reported Tuesday, citing a source close to the development.
The announcement of a deal for Citigroup Global Services is likely to be made "within three weeks," the paper said.
TCS, India's top software services exporter, has edged IBM in the race for the Citi unit and the deal would guarantee TCS business for the unit from Citigroup for five years, the paper said, citing this source.
A spokesman for Citi in India declined comment on the report. A spokesman for TCS also declined comment, calling the report speculative.
The Economic Times had reported in June Citigroup was restructuring its India backoffice operations and that it may sell or outsource most of these assets.
Citigroup unveiled a reorganisation of its Asia-Pacific business Monday, giving its regional heads increased authority.
The announcement of a deal for Citigroup Global Services is likely to be made "within three weeks," the paper said.
TCS, India's top software services exporter, has edged IBM in the race for the Citi unit and the deal would guarantee TCS business for the unit from Citigroup for five years, the paper said, citing this source.
A spokesman for Citi in India declined comment on the report. A spokesman for TCS also declined comment, calling the report speculative.
The Economic Times had reported in June Citigroup was restructuring its India backoffice operations and that it may sell or outsource most of these assets.
Citigroup unveiled a reorganisation of its Asia-Pacific business Monday, giving its regional heads increased authority.