Tata Consultancy Services (TCS) has completed the acquisition of Citigroup Inc's business process procurement operation in India, Citigroup Global Services Ltd, for $512 million in cash.
In addition to the sale, Citi has also signed an agreement whereby TCS would provide process outsourcing services to Citi and its affiliates for an aggregate amount of $2.5 billion over a period of 9-1/2 years, TCS said in a release.
The acquisition broadens TCS' portfolio of end-to-end IT and BPO services in the global banking and financial services (BFS) sector, the software major said.
''This acquisition gives us the ability to offer a end-to-end, domain-led third-party solution for business operations to our large financial services clients. We will also work to create platforms for the future and integrate our strong domain expertise in operations along with our suite of products for the financial services sector.'' N Chandrasekaran, COO and executive director of TCS, said.
TCS has provided IT services to Citi since 1992 and is currently one of the largest IT services partners for Citi, delivering IT and BPO services to Citi operations in North America, Europe, India, Japan, Singapore and the rest of Asia Pacific, TCS said in the release.
CGSL is one of the largest providers of BPO services within the banking and financial services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citi's consumer, corporate and global wealth management businesses world wide. CGSL has more than 12,000 employees located in India.
Tata Consultancy Services, a part of the Tata Group, offers a consulting-led, integrated portfolio of IT and IT-enabled services through its Global Network Delivery Model, recognised as the benchmark of excellence in software development. TCS has over 116,000 trained IT consultants in 50 countries. The company generated consolidated revenues of $5.7 billion for fiscal year ended 31 March 2008.