Teleglobe's unit, Excel Communications said Tuesday it would outsource its U.K. systems operations to IBM Global Services, in a deal valued at more than $300 million over the next 10 years.
Excel is a $1.2 billion US subsidiary of international phone and data carrier Teleglobe.
Excel's executive V.P. of international operations, Malcolm Aylett said, "This agreement will enable us to take our successful model into an important new market with new products and services by the end of the year.
"Outsourcing the management of our business processes to IBM will enable us to establish an operation in the U.K. in a matter of months."
Excel said it plans to extend its telecom and e-commerce services to the residential market in the U.K. through an international network of independent representatives, using direct selling as a primary distribution channel.
IBM will be responsible for managing the U.K. call centre operations, the back office and infrastructure.
BCE is currently in the process of buying the remaining shares of Teleglobe that it does not already own.
Earlier this month, Teleglobe reported worse-than-expected earnings for the second quarter and unveiled $315 million worth of restructuring charges.
On Tuesday, Teleglobe stock lost a nickel to close at $30.25 on the TSE.