Citi complets the sale of Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) business, to Tata Consultancy Services (TCS), a IT services, business applications and outsourcing firm, for all cash consideration of $512 million.
In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates over a period of 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 transaction is expected to help reduce operating expenses related to business processing and will allow Citi to focus on its core financial services competencies. Further, it will reduce Citis total headcount by more than 12,000 employees, all of whom are located in India.
D.C.