Citi sells India outsourcing unit to TCS
Tata Consultancy Services is to buy Citi's outsourcing company in India for a price of $505 million, though Tata extracts a nine-year servicing contract from the US bank.
Citi announced yesterday that it will sell its outsourcing business in India to Tata Consultancy Services for $505 million and simultaneously entered into a nine-and-a-half-year contract to buy outsourcing services from the Indian firm for $2.5 billion.
TCS will buy a 96.3% equity interest in Citigroup Global Services Limited, the India-based captive business processing outsourcing arm of Citi. Under TCSÆs ownership CGSL will continue to provide Citi and its affiliates with business process outsourcing BPO services for the contract...
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