NEW DELHI (AFP) — US financial giant Fidelity Investments has put its captive Indian technology services unit up for sale as part of a cost-cutting move, India's Economic Times newspaper reported Monday.
The successful bidder would get a multi-year outsourcing contract from Fidelity, the newspaper said, citing two unnamed people it said were involved in the sale process.
Fidelity is one of the world's largest mutual fund, brokerage and wealth management services.
The newspaper quoted a Fidelity spokesman as saying the possible sale was part of the company's "global business transformation strategy" and that the company was "exploring options."
Potential suitors for the information technology unit included top Indian outsourcing companies such as Infosys, Wipro and Satyam or foreign companies such as IBM or Accenture, the Economic Times said.
The move was part of Fidelity's cost-cutting efforts against the backdrop of the global financial crisis, the newspaper said.
The report comes after both British insurance giant Aviva and Citigroup sold their own Indian back office operations in similar deals earlier this year.
The IT group is part of Fidelity Research and Management Co India, which provides back office support to Fidelity in the United States.
The newspaper said the IT unit has 2,000 employees and represents around 70 percent of Fidelity Research and Management Co's employee strength, the Economic Times said.
The sale would not include those Indian Fidelity employees working in areas such as business analytics, the newspaper said.
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