Cemex signs $1-billion services deal with IBM

ARMONK, N.Y.—IBM Corp. won a 10-year, $1-billion business consulting and I.T. services contract with building materials supplier Cemex SAB de CV.

Mexico’s Cemex expects the agreement will help it drive sustainable improvements in profitability, starting with efficiencies of close to $1 billion during the life of the contract.

IBM and CEMEX will implement state-of-the-art business processes, practices, and information systems developed by IBM.

CEMEX will also leverage IBM’s worldwide expertise to accelerate and replicate innovative practices in CEMEX business units to achieve better customer service, increase process quality and sustain cost improvements.

The contract includes services related to finance and accounting, human resources, information technology infrastructure, application development and maintenance.

Reuters reporter Cyntia Barrera quotes Cemex Chief Financial Officer Fernando Gonzalez saying the outsourcing deal would likely affect between 1,500 and 2,000 jobs, which he said was a preliminary estimate.

CEMEX is a global building materials company with market capitalization of $7.86 billion. It has 44,684 employees and operates in more than 50 countries throughout the world.