IBM in 10-year IT outsourcing deal with Telefonica

Enterprise IT vendor IBM on Wednesday announced its 10-year IT outsourcing deal with telecom network operator Telefonica.

IBM will modernize and manage different Telefonica Human Resources and Finance Management processes as part of the agreement announced on Wednesday.

IBM will also be acquiring three companies of Tgestiona, a Telefonica company and provider of finance and human resources processes management for communications sector in Spain, Argentina and Peru.

Tgestiona provides business process outsourcing (BPO) services, with offices in Spain, Argentina and Peru serving clients across Europe, Latin and Central America.

Telefonica, which has 327 million subscribers across 21 countries, aims to simplify operations, drive efficiencies, and deliver client experience as part of the IT outsourcing contract. IBM did not reveal the size of the IT contract. IBM is currently working with telecoms including Bharti Airtel in emerging telecom markets.

IBM said it differentiated with its consult-to-operate approach and its digital reinvention point of view, which aligns with Telefonica’s transformation strategy.

“IBM was chosen as our strategic partner based on its ability to demonstrate market-leading best practices in finance and HR, deliver a superior user experience to Telefonica, and demonstrate automation and digital innovation while respecting the cultural diversity of our clients,” said Javier Delgado, director Planning, Projects and Global Services of Telefonica.

Jesus Mantas, general manager of IBM Consulting and Global Process Services, said: “Our deal with Telefonica represents the future of process transformation in the digital age. It delivers efficiencies while addressing the cultural and human elements of digital change, reducing risks and operational disruption.”

Baburajan K