citi-sells-india-outsourcing-unit-to-tcs

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 term.

ôThis deal is probably the largest take-or-pay contract agreed in the information technology sector in India to date,ö says a source close to the deal. For TCS, the assured business from Citi makes...
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