Business Daily from THE HINDU group of publications
Thursday, Jan 01, 2009
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Business Daily from THE HINDU group of publications Thursday, Jan 01, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Mergers & Acquisitions
Mr N. Chandrasekaran, COO, TCS Our Bureau Mumbai, Dec. 31 Tata Consultancy Services (TCS) completed the acquisition of Citigroup Global Services Ltd (CGSL), the India-based BPO arm of Citigroup Inc, in an all-cash deal worth $512 million. The cost of the deal was marginally higher than $505 million announced in October due to variation in value of the rupee against the dollar. The deal includes a promise of $2.5 billion in committed revenue to TCS over a period of nine-and-half years. TCS annual revenue will increase to $600 million with the addition of $280 million from CGSL, said Mr Chandrasekaran, Chief Operating Officer, TCS. “By virtue of the deal, we will soon be announcing 2-3 major deals in the BPO space in the near future,” he added. Apart from committed business pipeline in an uncertain economic situation, CGSL will provide 12,472 professionals trained in core banking skills, which will be its biggest asset. Ruling out retrenchment, Mr Chandrasekaran said, “The total strength of the combined entity would be about 20,000. A team of professionals are already working on the integration process and the integrated sales effort will hit the ground soon.” On the higher salaries CGSL staff command, he said, “The salary levels are higher because of the healthy operating margins and we will try to maintain it.” TCS has been providing IT services to Citi since 1992 and is currently one of its largest IT services partners. “The current market conditions are difficult to clinch any major orders, but fortunately for us we are getting enquiries from customers. We will also explore the possibility of cross-selling projects,” he said. TCS to retain entire team of Citi’s BPO unit More Stories on : Mergers & Acquisitions | Outsourcing | Tata Consultancy Services Ltd
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