Citi, Lehman sell India Units

Filed in archive Outsourcing News on October 9, 2008

Photo courtesy of iStockphoto, Andrew Johnson

Citi has sold its Indian captive to Tata and Lehman has sold its Indian captive to Nomura in two of the largest (and what may be two of the only major) sales of US-owned captives. See this article in InformationWeek.

In the Citi deal, the center will continue to provide services to Citi under a 9.5 year, 2.5 billion dollar contract. Nomura's intentions are less clear, although one can expect that they will seek to leverage the high end back-office expertise that Lehman was famous for.

Because of the financial crisis and the marked reduction in demand among financial services firms, InformationWeek was bearish about future transactions of this type. Large centers dependent upon the American market may, however, face tough times as the US begins to look inward for jobs and financial stability.