Citigroup Inc. invested in India years ago to save money on domestic jobs in the U.S. Well, now Citi is ailing and,with a dire need for capital, the New York-based bank cannot afford to own those companies in India that offer back-office support.
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Citi reportedly has put its Indian subsidiaries, the BPO, Citigroup Global Services and the technology and infrastructure outsourcing arm, Citos, on the auction block, according to the Economic Times. The businesses are reportedly worth more than $1 billion, a sum Citi needs desperately because of its financial quagmire from investments in risky mortgages.
Citi won't have to look far for a buyer. Indian firm Tata Consultancy Group is reportedly interested. But the Economic Times reports IBM Global Services is the leading contender for the assets. Cap Gemini SA of France also is reportedly bidding. - Gerald Magpily
See Economic Times article
