TATA CONSULTANCY SERVICES BUYS CITI’S INDIA BPO UNIT

Posted October 8, 2008

NEW YORK and MUMBAI – Citigroup Inc. will sell its interest in Citigroup Global Services Ltd. (CGSL), its India-based business process outsourcing unit, to Tata Consultancy Services (TCS), the IT services, business solutions and outsourcing firm, for about $505 million in cash.

TCS will provide Citi and its affiliates with process outsourcing services through CGSL following the acquisition, which is expected to close in the fourth quarter, in return for about $2.5 billion over nine and a half years, building on the existing relationship between Citi and TCS.

“Our customers require access to increasingly complex processing solutions and this relationship will achieve a ‘best in class’ technology model that capitalizes on both CGSL’s expertise in financial services and TCS’s expertise in process optimization,” says Don Callahan, Chief Administrative Officer at Citi. “TCS will offer CGSL stronger growth potential and superior continued services to Citi clients around the world. This transaction is expected to help reduce operating expenses related to business processing and will allow us to focus on our core financial services competencies.”

The acquisition broadens TCS’s portfolio of end-to-end IT and BPO services in the global banking and financial services (BFS) sector. TCS’s enhanced scale and expertise will provide service improvements to Citi and Citi’s customers.

“This is a landmark acquisition for TCS, helping us not only acquire new capabilities in the banking domain but also underscoring the importance of our long-term, sustainable relationships with our large customers, including Citi,” says S. Ramadorai, Chief Executive Officer at TCS. “This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward.”