Indian IT cos get bolt out of blue as IBM wins Cemex deal

IBM outbid Indian IT majors in a USD 1.5 - USD 1.8-billion IT outsourcing deal from Mexico-based  Cemex, the third-largest cement manufacturer in the world. While Infosys , TCS and Wipro had been vying for the 10-year deal, sources confirmed that Cemex has decided to go with the global technology major IBM.

According to analysts, the deal was of great significance to Indian IT firms as contracts of this size have dried up over the past few years after the global recession. The trend in projects has now begun to lean towards multi-sourcing and smaller contracts.

The Cemex deal is also said to involve the sale of Neoris, the IT services arm of Cemex. IBM is likely to take ownership of the firm which is said to be the second largest offshoring firm in Latin America. Lorenzo Zambrano CEO and chairman of Cemex is also a member of the board in IBM

A spokesperson from Cemex said that while the company has been exploring the possibility of outsourcing some its back-office support services, it cannot comment on the development. Wipro has also said it did not wish to comment on market speculation. In a last-minute response to CNBC-TV18's query, IBM stated, "We do not respond to market rumours."