India's TCS sees back office deals

MUMBAI, Dec 31 (Reuters) - Tata Consultancy Services' (TCS.BO) acquisition of the Indian back office operations of U.S. bank Citigroup (C.N) is bringing in new business and India's top outsourcer was hopeful of closing two contracts, a senior official said on Wednesday.

N.Chandrasekaran, chief operating officer, also declined to comment on a possible bid for embattled smaller rival Satyam Computer Services (SATY.BO) (SAY.N).

Speculation about a strategic or a private equity investor buying into Satyam has been mounting since its botched attempt two weeks ago to buy firms in which Satyam's management held stakes.

TCS, part of the diversified Tata group, on Wednesday closed the acquisition of Citigroup Global Services for $512 million.

The potential new contracts could be worth tens of millions of dollars, N.Chandrasekaran said at a news conference, without elaborating.

The Citigroup banking and financial services back office unit brings 12,000 employees and $280 million in annual revenue taking TCS's back office revenue to $600 million, he said.

TCS will also get an outsourcing contract worth $2.5 billion over 9-1/2 years from Citi, he said.

(Reporting by Narayanan Somasundaram; Editing by Erica Billingham)