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August 01, 2012
CEMEX Picks IBM to Provide Business Process Outsourcing, IT Services
By Sujata Garud, TMCnet Contributor
CEMEX, a global building materials company, has entered into a 10-year strategic agreement with IBM (News - Alert), which will deliver world-class business process and information technology services to CEMEX.
Value of the service contract is worth just over $1 billion. IBM will be responsible for providing finance and accounting, and human resource back-office services – in addition to IT infrastructure, application development and maintenance services.
“Through this agreement, we reinforce our commitment to transform CEMEX into an increasingly flexible, agile and competitive global company,” said Lorenzo H. Zambrano, chairman and CEO at CEMEX. “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.
The step of signing this agreement will allow CEMEX to augment its competitiveness and better serve its customers. It is expected that through IBM’s services, CEMEX will make savings of about $1 billion during the life of the contract.
As per the deal, IBM and CEMEX will execute state-of-the-art business processes, practices and information systems developed by IBM.
IBM's worldwide expertise will also help CEMEX to speed up and replicate innovative practices in CEMEX business units to achieve better customer service, increase process quality and sustain cost improvements.
“This agreement will bring to CEMEX the flexibility to face the new challenges in the building materials industry,” said Bruno Di Leo, senior VP of Sales and Distribution for IBM. “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.”
IBM was recently in the news when it announced a collaborative program with JSC Altyntau Resources, a Kazakhstan-based gold producer. According to the deal, IBM will provide JSC Altyntau Resources with a new business analytics system to enable the company to enhance its gold yields and optimize its operational efficiency.
Edited by Braden Becker
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