Latin America’s second largest IT consulting firm Neoris has landed a $500 million deal with Cemex, one of the world’s biggest cement companies, to provide IT outsourcing services for ten years.
Neoris is a subsidiary of Cemex and grew out of the solutions it created for the cement provider. The deal would see Neoris provide IT services such as software engineering, application development and technology deployments for multiple projects.
This agreement with Neoris comes in addition to the 10-year partnership that Cemex signed with IBM in 2012 for business process, application maintenance and IT outsourcing services. That agreement with IBM was billed as one of the biggest IT services deals ever struck by a Latin American firm.
“This agreement is a key component in Cemex’s continued transformation of front-office services to enhance customer satisfaction as well as driving efficiency in our back-office operations,” said Fernando Gonzalez, Executive Vice President of Finance and Administration at Cemex.
“The work done with Cemex has been critical for our consolidation as one of the most successful emerging players in the global IT services market place,” said Claudio Muruzábal, CEO of Neoris.
As the world’s third biggest cement maker, Cemex, based in Monterrey, Mexico, has been under strain from back-breaking debt built up during the global construction slowdown four years ago. The global economic recession — in addition to lingering debt from the sudden U.S. housing crash, and the $16 billion buyout of Australian peer Rinker in 2009 — has pushed Cemex to deploy cost-cutting strategies both at the operational and corporate level.
As a result, Cemex has turned out to be one of the largest clients for outsourcers in the nearshore region. Miami, Florida-based Neoris is the only SAP-based IT services provider of Latin American origin.