TCS to bag two BPO deals, post Citi arm acquisition
TCS is in talks to win two large BPO contracts as a consequence of its acquisition of Citigroup Global Services.
By ET Bureau |
MUMBAI: Tata Consultancy Services (TCS) is in talks to win two large BPO contracts as a consequence of its acquisition of Citigroup���s BPO captive, Citigroup Global Services (CGSL), a company official said on Wednesday.
India���s number one IT exporter also announced the completion of the CGSL transaction. The transaction is estimated at $ 512 million and includes a revenue commitment of $ 2.5 billion from Citigroup.
TCS chief operative officer (COO) and executive director, N Chandrasekaran, said an integration team had been formed back in October so as not to lose time. ���We will hit the ground running in terms of sales efforts. We���re not going to be reporting only CGSL numbers...Our game is all about integration,��� he said.
Along with CGSL, TCS BPO will now have around 20,000 employees and the firm expects an annual run rate of $ 600 million in BPO revenues. The TCS stock was down nearly 1% to Rs 478 on the BSE on Wednesday.
The two possible BPO contracts are potential multimillion multi-year contracts. Mr Chandrasekaran said the deals would be ���noteworthy��� if TCS managed to close them. Through the acquisition of CGSL, TCS has obtained end-to-end financial processing and capability to run core-banking processes.
On the currently challenging business environment, Mr Chandrasekaran said client specific problems continued and certain clients were not growing but that other deals were getting closed and the deal pipeline was good. ���In this market you should expect pricing pressure but we are being very disciplined about margins,��� he said.
India���s number one IT exporter also announced the completion of the CGSL transaction. The transaction is estimated at $ 512 million and includes a revenue commitment of $ 2.5 billion from Citigroup.
TCS chief operative officer (COO) and executive director, N Chandrasekaran, said an integration team had been formed back in October so as not to lose time. ���We will hit the ground running in terms of sales efforts. We���re not going to be reporting only CGSL numbers...Our game is all about integration,��� he said.
Along with CGSL, TCS BPO will now have around 20,000 employees and the firm expects an annual run rate of $ 600 million in BPO revenues. The TCS stock was down nearly 1% to Rs 478 on the BSE on Wednesday.
The two possible BPO contracts are potential multimillion multi-year contracts. Mr Chandrasekaran said the deals would be ���noteworthy��� if TCS managed to close them. Through the acquisition of CGSL, TCS has obtained end-to-end financial processing and capability to run core-banking processes.
On the currently challenging business environment, Mr Chandrasekaran said client specific problems continued and certain clients were not growing but that other deals were getting closed and the deal pipeline was good. ���In this market you should expect pricing pressure but we are being very disciplined about margins,��� he said.
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