IBM (NYSE: IBM) and Telefónica have 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 Telefónica company specialized in finance and human resources processes management for Communications Sector -- in Spain, Argentina and Peru.

Telefónica 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 Telefónica´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 Telefónica, and demonstrate automation and digital innovation while respecting the cultural diversity of our clients,” said Javier Delgado, Director Planning, Projects and Global Services of Telefónica.

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

"We understand Telefónica's enduring commitment to its people and its customers," said Jesús Mantas, General Manager of IBM Consulting and Global Process Services. "Our agreement with Telefónica 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.