Tata Consultancy Services TCS is in talks to win two large BPO contracts as a consequence of its acquisition of Citigroups BPO captive, Citigroup Global Services CGSL, a company official said . Indias number one IT exporter also announced the completion of the CGSL transaction. The transaction is estimated at USD 512 million and includes a revenue commitment of USD 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. Were 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 USD 600 million in BPO revenues.
The two possible BPO contracts are potential multimillion multiyear contracts. Mr Chandrasekaran said the deals would be noteworthy if TCS managed to close them. Through the acquisition of CGSL, TCS has obtained endtoend financial processing and capability to run corebanking 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.