Mergers and Acquistions News
Categories: BPO
October 8th 2008, 14:32PM
Citigroup is to sell off its India-based business process outsourcing (BPO) unit for approximately $505 million (£290 million), it has been reported.
According to Finextra.com, Tata Consultancy Services (TCS) has announced that it will pay the cash consideration in order to purchase Citigroup Global Services.
The deal follows the revelation earlier this week that Nomura is to take over Lehman Brothers' former BPO operations in Mumbai.
TCS apparently beat IBM to the India business, which will benefit from $2.5 billion worth of Citi outsourcing over the next nine-and-a-half years as part of the agreement.
Citi has been looking to sell the division for over a year, with Genpact, WNS and Firstsource all among the companies reportedly showing interest.
The firm's chief administrative officer Don Callahan claimed the sale, which will likely close before the end of 2008, "will allow us to focus on our core financial services competencies", as well as reducing operating costs in the sector.
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