Indian
outsourcing supplier
Tata Consultancy Services (TCS) is acquiring rival outsourcer
Citigroup Global Services (CGS) for about £300m.
India-based CGS is the
business process outsourcing (BPO) arm of bank Citi. In
addition to the sale, Citi has signed an agreement for TCS to
provide, through CGS, process outsourcing services to Citi and its
affiliates in a deal worth almost £1.5bn over 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
sector.
CGS has more than 12,000 employees located in India and expects
to generate revenues of around £165m in 2008.
The deal is expected to be completed in the fourth quarter.