P&G To Outsource 80% Of Business-Process Functions

Procter & Gamble Co. plans to outsource much of its global information technology operation and as much as 80% of its business-processes functions, including help-desk services, travel, and parts of purchasing and accounting, the company confirmed Friday.

A P&G spokesman would not confirm reports that EDS and Affiliated Computer Services are finalists to receive the outsourcing deal, which published reports valued at more than $1 billion annually.

P&G disclosed the outsourcing plan to its 7,000 Global Business Services employees this week, the spokesman says. Under the plan, 5,700 of the 7,000 employees and the IT infrastructure that supports their work would transfer to the outsourced business-process provider. It's unclear how the outsourcing plan will affect P&G's efforts to streamline its supply chain by building systems that let it work more closely with retailers and wholesalers on inventory levels and product-stocking plans, the spokesman says.

However, focusing its core competencies should make P&G a more nimble company that can concentrate on getting products to market, the spokesman says. P&G's core business operations, product development, sales, marketing, and customer relations aren't part of the outsourcing deal.