Wipro has acquired Citi Technology Services, the India-based provider of IT services to Citigroup, for $127 million in cash.
With the addition of Citi Technology’s 1,650 coolies, Wipro’s total coolie count will rise to 99,202 (it may have already reached 100,000 taking into account the coolie cattle trains arriving from the campuses).
Under the deal, Wipro will also provide technology infrastructure and application development and maintenance services to Citi and its units for six years through its cooliepower a.k.a. manpower. Wipro claims the outsourcing deal is valued at $500 million in service revenues over the term of the contract.
The deal is to close by March 2009.
Besides technology infrastructure services, Citi Technology (offices in Mumbai & Chennai) is also said to have developed expertise in application development and maintenance capabilities in cards, capital markets and corporate banking.