India’s top BPO company, Genpact (formerly GE Capital International Services) is expected to pick up 80% stake in Citibank’s BPO arm, Citigroup Global Services for around $750-800 million, valuing the BPO at a billion dollars.
Previosuly some PE investors were believed to be in the race for CGS. Genpact is coming out with an IPO is USA and this acquisition would give it better valuation as it will give more exposure to the banking and financial verticals.
60% of India’s $8 billion BPO industry revenue comes from the financial space but inspite of the high growth, Citi wants to exit its BPO as it’s a capitive unit which has high operational costs. In such scenario Citigroup would have faced difficulty in being cost competitive compare to third party outfits.
Earlier, a NASSCOM survey came out with a list of India’s top 15 BPO companies. Genpact, 40% owned by General Electric Co. got the top position followed by WNS Global Services and Transworks Information Services. Citigroup Global Services was ranked at the 11th spot. via
Find this article at: http://www.labnol.org/india/corporate/genpact-interested-in-citigroups-bpo/860/
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