Tata hits the winter sales

If any further proof were needed that the future of consulting is likely to be a global affair, India's Tata Consultancy Services has just offered some. The firm - a unit of the giant (and cash rich) Tata Group conglomerate - has reportedly shelled out around $512 million to take Indian BPO unit Citigroup Global Services Ltd. off of struggling (and cash poor) Citi's hands. Even better news for Tata is that the deal comes with a 9.5 year agreement to provide outsourcing services to Citi - something that will net Tata an estimated $2.5 billion in revenues from Citi in that period alone.

In addition to that, The Economic Times reports that the acquisition puts the firm in prime position for winning two large BPO contracts, both of which are touted as "potential multimillion multi-year contracts." If all of that sounds a little like Tata just got the deal of the century ($500 mil for a company that guarantees 5 times that in revenue, plus the potential for more), you're not alone in your thoughts. Funny how money talks so much louder when times are hard.

- Posted by Phil Stott