Information technology giant IBM has opened a new global delivery center in Cebu as it expands its application services (AS) operations in the Philippines.

The new hub will complement IBM’s delivery center for AS in Manila, which was launched in 2003.

“Global integration is about tapping into the best skills and capabilities from across the globe and delivering them where needed. Cebu was chosen because it offers a conducive infrastructure and a wealth of talent,” IBM Philippines general manager James Velasquez said in a statement.

“As an integral part of IBM’s strategic network of delivery centers, the team in the Philippines provides a full range of end-to-end consulting, systems integration, and application development and maintenance solutions to many valued customers around the world,” added Lula Mohanty, director for Philippines Global Delivery of IBM Global Business Services.

For her part, Cebu governor Gwendolyn Garcia said, “The launch of this new IBM global delivery center site in Cebu signals the strong confidence global businesses have in Cebu and its people.”

In the last 5 years, IBM said it has grown its workforce in the Philippines to over 7,000, providing services to both the domestic and export markets.

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In its effort to bring down cost and boost efficiency, Del Monte Philippines, Inc., has tapped IBM’s technology expertise via smart IT and Data Center outsourcing solutions.

The company’s shift allows it to focus on a more strategic IT roadmap aimed at supporting a five-year revenue projection while addressing the growing costs of managing and supporting IT operations.

Likewise, the move to IBM, addresses the business demands of greater availability and higher service performance as Del Monte is now able to swing their capital expenditure (capex) to purely operational expenditure (opex) with their SAP migration infrastructure particularly on the infrastructure.

The two contracts worth approximately US$3.1 million covering a five-year period were signed in 2009.

The first is a total IT infrastructure services outsourcing contract. Under the Service Level Agreement, IBM provides management for the food giant’s Data Center, Servers/Storage, Network, DMS, Helpdesk, IT Asset & Vendor Management.

The second contract covers management of an outsourced SAP Infrastructure ( servers, storage, Data Center facility & Disaster Recovery site) for Del Monte’s migration to SAP ECC 6.0 while maintaining the asset ownership of the said Infrastructure.

Del Monte’s Cesar Canlas, chief information officer (CIO) said IBM liberated funding for direct savings and increased the company’s IT efficiency in its day-to-day operations. The company’s productivity and business growth are expected to be enhanced.

“Our clients recognize that in today’s business environment, technology is the differentiator which can provide a valuable competitive edge,” said James Velasquez, Country General Manager, IBM Philippines.
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