By Erich Clementi, Senior Vice President, Global Technology Services, IBM
When CEMEX—one of the world’s largest cement makers and building companies—needed to transform its global IT operations into a strategic advantage, it had to qualify 17 partners for the right fit.
I’d like to give you my insight as to why IBM won the deal announced today and how it points to things to come in the IT industry.
First, IBM was chosen over competitors due to our world-class expertise tapping the entire breadth of IBM’s capabilities—services, hardware, software and research and development.
That means we are opening the doors of IBM Research, the largest, most creative and productive R&D organization in the industry, as well providing our most innovative technologies like Cloud computing and PureSystems to drive their business innovation, analytics to help predict energy consumption, and social collaboration tools to work more cohesively across global operations.
Secondly, CEMEX benefits from our services expertise gained from thousands of complex projects—which IBM converts into repeatable software assets and global delivery. We bake-in IP from our $6B R&D organization by commercializing innovation around processes, service management, industry expertise and security. We have invested tremendously to industrialize our services business. And this is where that investment pays off.
Finally, CEMEX is in a growth market and looking to expand further. It needed a global partner like IBM with established Global Services Centers in Hungary, Romania, USA, China, India and the Philippines, for example, with more than 70 service delivery centers and 400 data centers, with talented people who speak more than 40 languages. No other company on the planet can offer that kind of global capability.
Look at another recent win in Latin America, to see how CEMEX is part of a larger IT trend. IBM signed a similar contract to outsource EBX’s IT operations for approximately $1 billion over 10 years. IBM will contribute with more intelligent solutions with new products, software and services that complement EBX’s experience in oil, gas, mining, shipbuilding, ports and others.
For growth market companies like CEMEX and EBX to grow and scale at the pace they need, they have to have an innovation partner. More than just running IT, outsourcing deals have become a partnership steeped in innovation and global capabilities.
For details on this CEMEX $1+ billion, 10-year deal, check out the press release.