Citigroup is believed to be restructuring its India backoffice operations, valued at around $1 billion, and may sell or outsource most of these assets, the Economic Times said on Friday.

The BPO, Citigroup Global Services, and the technology and infrastructure outsourcing arm, Citos, "are on the block" and Citi "could be close to finalizing the deal" with IBM , the lead contender", the newspaper said, citing unnamed sources.

Capgemini and a large Indian IT services firm, reported to be Tata Consultancy Services are the other two contenders, the paper said.

A spokesman for Citi said they would not comment on speculation. A spokeswoman for TCS declined comment, calling the report speculative.

In May, the newspaper had reported Citi had plans to exit its consumer finance business in India, news that the company later denied, saying it was only repositioning the products.