Strategic Alliances Boost Spanish Firms’ Technology Offerings

Strategic Alliances Boost Spain Firms' Technology Offerings

Strategic Alliances Boost Spanish Firms’ Technology Offerings

Spain has seen an increase in strategic alliances in part due to the economic downturn, which has driven many companies to seek partners to enhance their business prospects.

Unlike a joint venture, a strategic alliance does not involve the creation of a new company. But it can offer the following benefits:

• The opportunity to access better technology.
• The opportunity to optimise complementary strengths.
• The opportunity to cut costs and take advantage of synergies.
• The opportunity to enhance each firm’s innovation potential.

Strategic alliances make good sense as they allow the companies involved to pursue agreed objectives or meet a critical business need while remaining independent organisations.

After spearheading the merger of four savings banks, Spanish lender Kutxabank recognised the challenge it faced to integrate their different IT systems. Global IT giant IBM came to the rescue to transform and optimise the bank’s technology infrastructure.

A STRATEGIC PARTNER FOR RESTRUCTURING SUCCESS

Basque bank BBK – now part of Kutxabank – had already embarked on a journey to smarter computing with IBM, following its acquisition and integration of savings bank CajaSur in 2010.

With four banks now under its belt, Kutxabank signed an over 200 million euro strategic services alliance with the US company last year. The 10-year agreement is expected to generate substantial savings for the bank. IBM will innovate and develop Kutxabank’s IT infrastructure and will provide branch offices and ATM maintenance, giving the bank greater business flexibility to adapt to market changes.

Kutxabank’s partnership with IBM will ensure that its restructuring plans are successful, allowing it to become a leading player in Spain’s financial sector.

STRATEGIC ALLIANCES BOOST SPANISH TELECOMS INDUSTRY

Strategic alliances are also in vogue in the telecommunications industry. Hardly surprising, given this business’ heavy investment requirements.

Spanish telecoms giant Telefonica and Swedish TeliaSonera’s Spanish subsidiary Yoigo have recently joined hands to offer better services to more customers. In 2008, Yoigo signed a national roaming contract with Telefonica allowing it to use its bigger rival’s 2G and 3G networks. A new round of strategic agreements between the two operators has extended this network sharing to 2016, allowing Yoigo to continue to offer mobile voice services throughout Spain.

This wide-ranging alliance between the two companies also enables Yoigo to sell combined fixed-mobile services to its customers, while Telefonica’s mobile phone arm Movistar will have access to Yoigo’s 4G network.

A winning partnership in a business where technological innovation and leadership is crucial to beat out the competition.

For more information on strategic alliances in Spain, contact corporate law firm Argali Abogados.

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