CGSL is mostly into transaction processing and call centre processing which suits TCS. The Tata group company pulled out of Intelenet, a third party BPO backed by Blackstone, as it wanted to exit from the voice-based BPO sector. Its MD S. Ramadorai had earlier said that Intelenet’s focus did not fit into TCS’ BPO strategy which was focussed on transaction processing, e-mail processing and call centre processing.
Both Citigroup and TCS declined to comment on the development. “At Citi, we follow the policy of not commenting on market rumours and speculation. Accordingly, we are unable to respond to your request.” said a Citi spokesperson in an e-mailed response. A TCS spokesperson said “As a policy, TCS does not comment on market speculation.”
IBM was the other contender for the captive BPO unit, said another source. IBM was also believed to be keen on acquiring Citos, the technology and infrastructure outsourcing arm of Citigroup. “ But Citi intends to sell CGSL first. And IBM found the pricing for CGSL too high”, the source said.