Citigroup's BPO arm, Citigroup Global Services(CGSL) is likely to be taken over by Tata Consultancy Services(TCS). The deal, as learnt from sources close to the firms, is fixed at $ 550 million, which is to be anounced in two weeks time. Based on comment of such sources, it is derived that TCS is eyeing business for CGSL from Citigroup for five years.

IBM and Genpact are said to be the other bidders. Seems, talks with Genpact fell as it sought an exclusive agreement which was turned down by Citi, and IBM lost interest as there were certain riders not liked by it, informed sources.

CGSL is the company handling multiple operations for Citigroup entities worldwide, with a number of six lakh sq ft of combined offices in India. These operations involve cards, consumer finance, retail banking, capital markets and banking and also global transaction services. It has more than 60 million customers in Asia, Europe, Africa, and North America, Citigroup's operations are catered in more than 40 countries and the company is present in over 100 countries.

Mumbai, Chennai, and Gurgaon are the largest centres of operations of CGSL, employing about 12000 people. The company has 8000 strong back-office operations team, mainly in India. With TCS's acquisition of Citi's BPO, it is expected to go higher in number.  X