HR outsourcing requires preparation and communication


HR outsourcing requires preparation and communication

Nigel Montgomery and Monica Barron

Procter & Gamble (P&G) has chosen IBM’s Business Transformation Outsourcing (BTO) unit to operate P&G’s global employee services operational processes, including payroll processing, benefits administration, compensation planning, travel and expense management, expatriate and relocation services, HR data management, stock option administration, employee relations, and learning systems administration. The agreement begins 1 January and is valued at more than $400m over 10 years.

The Bottom Line: To follow P&G’s lead will require companies to establish a clear picture of the processes to be outsourced and their existing associated costs.

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This was first published in October 2003


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