India's third largest IT company, Wipro Technologies has acquired Citi Technology Services (CTS) for approximately Rs 600 crore ($127 million). Both Wipro and Citi will sign a Master Services Agreement to provide technology infrastructure services and application development and maintenance services for six years. While interacting with the media, Wipro IT Business Joint CEO Girish S Paranjpe said that his company will provide efficient IT services to CTS which has played a pioneering role in leveraging technology for banking.

 

The 100 percent subsidiary of global financial services giant Citigroup Inc, CTS is an India-based captive provider of technology infrastructure services and application services to Citi entities worldwide. It has facilities in Mumbai and Chennai, with an employee strength of about 1,650. The company is operating its servicing businesses in more than 32 countries. CTS is expected to end this calendar year with a revenue of $80 million, up from $53 million in 2007.

 

With the acquisition of CTS, the Wipro has pushed up its tally of acquisitions to 16. In a statement to the media, the IT company said that the CTS acquisition will help in enhancing its remote infrastructure management capabilities and domain expertise. When asked the effect of global economic meltdown, Girish Paranjpe said that although the market is volatile at the moment, but it will start to recover in 2009. The services agreement between Wipro and Citi is expected to accrue at least $500 million during the six years.