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Citigroup in Outsourcing Deal with First Data

Posted by Susan Hall Jul 16, 2009 12:23:46 PM

Citigroup plans to outsource the core processing elements of a U.S. receivables management business to First Data Corp., reports Reuters.

 

Financial terms were not disclosed in the move to hand over tasks including lockbox, image capture, posting and reporting of receivables for corporate billers. It will allow Citigroup to hand over 500 jobs to First Data, which plans to hire all the existing Citigroup workers, and to cut its IT costs.

 

In April, JPMorgan said it is selling its national retail lockbox business to Indian IT company 3i Infotech, notes Finextra.

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