India: Tata to Buy Citigroup Operations

India’s largest outsourcing firm, Tata Consultancy Services, is buying Citigroup’s back-office operations in India for $505 million in cash, the companies said on Wednesday. Citigroup is also giving Tata Consultancy a $2.5 billion, nine-and-a-half-year contract to provide outsourcing services to Citi and its affiliates. Citigroup, suffering from $61 billion in credit-related write-downs, has been trying to sell off noncore assets. Citigroup’s back-office operations have more than 12,000 employees in India and are expected to have revenue of $278 million in 2008. ---by world business