What Citigroup with Their 50,000 Layoffs Didn't Tell You - Yup, Outsourced to India

You probably saw the reports on Citigroup firing 53,000 people, but what most of these stories failed to note is they also outsourced to India their IT services.

It's festival time in India, and Tata Consultancy Services, the country's largest IT software and services provider, is celebrating with gusto. After months of speculation, TCS acquired Citigroup's (C) India-based outsourcing unit, Citigroup Global Services, for $505 million in an all-cash deal announced on Oct. 8. That's the largest-ever purchase for TCS. What's more, the company bagged a $2.5 billion contract to provide process outsourcing services, application development, and infrastructure support to Citigroup and its affiliates over nine-and-a-half years. "This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth," says S. Ramadorai, chief executive officer of TCS.

So Citigroup sold it's India based Global services, yes those jobs were already offshore outsourced, but in addition gave TATA, the India Outsourcer, a $2.5 Billion dollar contract for 8.5 years.

So much for keeping that United States taxpayer bail out money inside the United States.

Even better, now Citigroup is having internal meetings to discuss their options due to the plummeting stock price.

Citigroup Inc.'s board meets today to discuss the bank's options after Chief Executive Officer Vikram Pandit's efforts to rebuild investor confidence failed to halt the stock's descent to a 15-year low, a person with knowledge of the matter said.

The board, led by Chairman Win Bischoff and independent director Richard Parsons, will meet at Citigroup's headquarters in New York, said the person, who declined to be identified because the deliberations are private. The panel may choose to sell pieces of the bank or the entire company, the Wall Street Journal reported, citing unidentified people familiar with the situation. The New York Times reported that management isn't actively considering a sale or split up of the bank.

Why doesn't Treasury Hank Paulson just build a fire, dress in tribal costume, burn the bail out money in a big pyre, dance around and chant to the Gods with all of his Pals joining in. About as effective.

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