OREANDA-NEWS. IBM (NYSE: IBM) and Telefonica today announced a 10-year contract for IBM to modernize and manage different Telefonica Human Resources and Finance Management processes of the telecommunications giant over the next 10 years.

As part of the agreement, IBM is acquiring three companies of Tgestiona -- a Telefonica company specialized in finance and human resources processes management for Communications Sector -- in Spain, Argentina and Peru.

Telefonica turned to IBM to drive three strategic objectives: simplify operations, drive efficiencies, and deliver a next-generation client experience. IBM 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 their 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.

IBM's market-leading process expertise and cloud operational platforms will help these companies modernize, deliver efficiencies, and improve client experience.

"We understand Telefonica's enduring commitment to its people and its customers," said Jesus Mantas, General Manager of IBM Consulting and Global Process Services. "Our agreement with Telefonica represents the future of process transformation in the digital age. It delivers the required efficiencies while addressing the cultural and human elements of digital change, reducing risks and operational disruption".

Founded in 2001, Tgestiona is a leading provider of Business Process Outsourcing (BPO) services, with offices in Spain, Argentina and Peru serving clients across Europe, Latin and Central America.

About Telefonica

Telefonica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. With its best in class mobile, fixed and broadband networks, and innovative portfolio of digital solutions, Telefonica is transforming itself into a ‘Digital Telco’, a company that will be even better placed to meet the needs of its customers and capture new revenue growth.

The company has a significant presence in 21 countries and a customer base of over 327 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.

Telefonica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4.864.341. 251 ordinary shares traded on the Spanish Stock Market  and on those in London, New York, Lima, and Buenos Aires.