MANILA, Philippines—Multinational technology giant IBM has signed a $1-billion outsourcing services deal with the world’s third-largest cement manufacturer Cemex, a development expected to lead to more jobs for Filipino workers
In a statement, IBM said its business process outsourcing (BPO) arm was tapped to provide a wide range of information technology (IT) services including research & development (R&D) for Cemex, which is based in Mexico.
“Given that Cemex is in a growth market, looking to expand globally, IBM is the only global company that can bring together all of those capabilities to help Cemex reach its business goal,” IBM said in a statement this week.
IBM said it would offer its full range of outsourced services to Cemex. These include consulting, technical, design, build, operate, business process management, infrastructure services and application services.
The company said it would also do work in areas like indirect procurement, asset management, supply chain and energy management.
“Cemex will get access to the largest, most creative and most productive research and development organization in the industry through IBM Research,” IBM said.
The 10-year services contract awarded to IBM is worth just over $1 billion, IBM said.
“Through this agreement, we reinforce our commitment to transform Cemex into an increasingly flexible, agile and competitive global company,” Cemex chair and CEO Lorenzo Zambrano said in a statement.
“Moreover, this agreement with IBM will enable Cemex to focus on its core businesses of cement, ready-mix concrete, and aggregates; improve its financial position; and respond more quickly to changing market needs,” Zambrano said.
IBM offers subcontracted work to clients from the company’s Global Delivery Services Centers in Hungary, Romania, the United States, China, India and the Philippines.
IBM Philippines representatives were mum on exactly how much of the work would go to the Philippines, but confirmed that the country would be a vital piece of the deal.
“IBM’s state-of-the-art IT infrastructure, business processes and applications will help Cemex achieve its goals of becoming more competitive. We see our strategic relationship with Cemex as a powerful example of building a smarter planet,” said IBM senior vice president of Sales and Distribution Bruno Di Leo.
IBM has a global network of more than 70 Service Delivery Centers and more than 400 Data Centers, in 170 countries covering more than 40 languages.
The local BPO industry is considered a key bright spot in the domestic economy. Last year, BPOs brought in $11 billion in revenues, making the industry the second largest source of foreign exchange for the Philippines next to remittances from overseas Filipino workers (OFW).