New Delhi - Indian outsourcing firm Wipro reached an agreement with global financial services company Citigroup to buy its India-based unit Citi Technology Services for about 127 million dollars, a joint statement by the companies said Tuesday.

Based in Mumbai and Chennai, Citi Technology Services provides information technology to Citigroup affiliates across the world, mainly in the banking sector.

It has 1,650 employees who will now join Wipro, India's third-largest software services provider.

Wipro and Citigroup would sign a six-year service agreement worth at least 500 million as part of the transaction, which is expected to be closed by March 2009, the statement added. (dpa)