Tata Consultancy Services is close to finalising an outsourcing deal of around $500-900 million (Rs 2,000-4,000 crore) with global financial services giant Citigroup Inc.
The deal is expected to be signed shortly, if not next week. TCS will employ 2,200 people for the assignment in the first year and will ramp it up, depending on the contract.
According to sources in the industry, negotiations between the companies have reached a "concluding stage", with TCS expected to sign the contract with Citigroup's consumer division.
The contract is based on a "take-or-pay-order" system. Under this contract, the information technology provider is to be paid a fixed sum of money for completing the work within a stipulated period of time.
When contacted, TCS executives refused to comment.
IT majors like i-flex and Satyam Computers are also part of the negotiations, and are expected to get a minor share of the total outsourcing deal.
The value of the entire outsourcing deal was not known. Sources said it would be an application, maintenance and development contract.
If the deal is signed, TCS is expected to execute it from its global delivery centres across the world, including from the one set up recently in London.
According to the contract, TCS will provide manpower, quality and processes to Citigroup. This is against the present method of "time and material contract", where Indian vendors charge fees by the hour.
