Wipro says buying Citigroup unit will boost IT infrastructure outsourcing in India

Offshore vendor plans to scale up remote IT management services for other customers

December 23, 2008 (Computerworld) Offshore outsourcing and IT services provider Wipro Ltd. is buying Citigroup Inc.'s IT subsidiary in India for $127 million, under a deal that also gives Wipro a six-year contract worth at least $500 million to provide technology services to Citi.

But as Soumitro Ghosh, senior vice president of finance solutions at Wipro, explains it, one of the major benefits that the Bangalore, India-based vendor expects to gain from the acquisition of Citi Technology Services Ltd. is the Citigroup unit's ability to deliver infrastructure outsourcing services to other customers.

Many U.S. companies, especially in the financial services industry, operate their own offshore centers in India and other countries as an alternative to contracting with offshore providers. Citi Technology Services, which was set up in 2005, has about 2,000 full- and part-time employees in the Indian cities of Mumbai and Chennai.

But Citigroup has been using its India-based operations not just for software development or tech support, but also to provide remote infrastructure management services, including administration of internal databases, networks, desktop systems and midrange servers.

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This comment following the article sums it up best:

"Let me make sure I understand this right

- Citi got the most american tax-payer money in the form of TARP, almost 13% of TARP money disbursed i.e. $45 billion

- American tax payer is on the hook for almost $300 billion losses of Citi's bad assets

- But Citi continues to ship more and more american jobs offshore to India. Indian offshore vendors like Wipro and TCS are getting sweet heart deals from Citi. In return for $500 million, TCS getting $2.5 billion revenue stream.

American taxpayers should quit bailing out banks like Citi. If Citi operates in 100 countries, why can't the UN bail Citi out ?"

..... then held a little ceremony celebrating smashing it into little bits......I so f**king hate Shitibank, the shameless outsourcing welfare queen that it is.

Our worthless Congress needs to put a STOP to it instead of 'doing nothing'. I wish Citi had failed.

I often wonder who is on the side of the American people anymore.

Every time I hear of our money that we provided getting misused like this.

pretty damn nuts aint it? Our crooked congressmen make it all possible.

Yep, let the UN bail their asses out! This ain't the way to wake up and see yet more USA jobs being shipped out of the country and WE are paying for it!

And that last question is perfect.

:grr:

:sarcasm:

You wanna confuse somebody or somethin'?