Procter & Gamble has confirmed that it intends to outsource a
number of business functions, including IT, to outside companies by
the end of this year.
P&G spokesman Terry Loftus said the global corporation - which
makes toiletries and household products - has not yet decided which
companies will take the work. He admitted, however, that the move
could affect about 5,700 workers out of the 7,000 in its global
business services division.
Loftus was unable to specify how many of the workers will be from
IT, although he did day that the areas to be included in the
outsourcing move do include IT jobs, as well as human resources
functions, some parts of accounting and purchasing, and some
helpdesk functions.
He refused to comment on a story in
The Wall Street Journal
that named Electronic Data Systems and Affiliated Computer Services
as finalists for the contract.
Loftus said P&G believes it can save money, access newer, more
advanced technology and benefit from working with third-party
companies that have expertise in handling business service issues.
P&G hopes that partnering with companies that focus on business
problems would allow it to focus on its own products and customers.
No decision has been made on where employees affected by the switch
would end up working, but Loftus said it is possible that they
could continue to work at P&G offices.
P&G employs about 106,000 people and produces 250 brands
worldwide.