Citi may sell India BPO arm to TCS as it rejigs Asia Pacific operations

Mumbai: Citigroup Inc is likely to sell its captive back office unit in India – Citigroup Global Services - to Tata Consultancy Services for close to $500-550 million as the global lender reorganises its Asia Pacific operations.

Ajay Banga Citi has reorganised its operations into four geographic clusters and seven product groups in order to achieve greater client focus and product excellence, its Asia Pacific CEO Ajay Banga said.

Media reports said TCS, India's top software firm, has edged out IBM in the race for the Citi BPO unit, which will guarantee TCS business from Citigroup for five years.

Citigroup, which plans to outsource back office operations, has been on the lookout for a buyer for the assets of Citigroup Global Services for some time now. The deal is expected to be announced within three weeks, reports said.

Post reorganisation, Citi's regional business heads in the Asia-Pacific region will have more authority.

While Ajay Banga will lead the organisation in Asia Pacific as the chief executive, the region will have four geographic clusters – Japan, North Asia, South Asia and South East Asia Pacific.