Citi, the bank attempting to cut £1.5 billion from annual IT costs, will sell its Indian IT arm to local services giant Wipro.
The agreement, set at $127 million (£87 million), means Wipro will also provide Citi’s offices worldwide with IT services, and application development and maintenance, for the next six years. Wipro currently provides infrastructure management services to Citi.
In October, Citi sold its Indian business process outsourcing operation to Tata, a rival of Wipro, for £290 million.
The group is also set to lay off 52,000 staff across its business, but has not yet announced how many IT staff will be affected.
Citi Technology Services, the operation being acquired by Wipro, has 1,650 staff and serves Citi offices around the world. It is based in Mumbai and Chennai, and provides general IT services, as well as application development and maintenance for bank cards, business banking and capital markets.
Marty Lippert, chief operations and technology officer at Citi, said the move would help drive “higher efficiencies”.
In July, insurance giant Aviva made a similar move to Citi's, selling its Indian BPO arm to WNS, another Indian outsourcer, as part of a £500 million cost saving programme.