Two mega-deals on opposite sides of the globe demonstrate continuing growth for IBM Global Services beyond the borders of the United States.
Today, IBM announced agreement on a deal estimated to be worth several billion dollars with Telefonica S.A., a $20 billion telecommunications company based in Madrid, Spain. IBM and Telefonica will jointly provide a sweeping array of services to businesses in Spain and Latin America using Telefonica's IP network and IBM's technology and services.
Yesterday, IBM Global Services won a 10-year outsourcing contract worth about $400 million with Japan's Mitsubishi Trust & Banking Corp., which has $250 billion in total funds. The contract is the first of three, with a total value estimated at more than $1 billion, that IBM expects to sign this year with the bank. The first contract covers the bank's wide area network and seven data centers. The second contract will address the bank's desktop and client-server environments, and the third will involve applications development.
Business overseas has been good for IBM Global Services, which posted $29 billion in revenue last year. Out of 38 deals worth more than $100 million last year, 17 were with companies outside the United States.