The acquisition of Citibank's back office by Tata Consultancy Services brings forth the following:
Citibank thus becomes TCS larges customer, a position held by GE for some time.
- Further validates that offshore captives are passe and no longer hold the charm.
- Offshore IT players consider a BPO capability essential to their future growth. This being operations, it gives a credible platform to bring new customers, especially those that are moved through cross-sell from the list of customers for application development and maintenance.
- This deal gave TCS a ready pool of 12,000 resources who would be productive from day one and speed-up what would otherwise take at least two years to recruit along with ready infrastructure they come with.
- On the new business, part of what TCS pays would be recovered with revenue from Citibank over next few years and that is part of the deal .
Citibank thus becomes TCS larges customer, a position held by GE for some time.
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