P&G may outsource 5,700 jobs by year's end

Procter & Gamble has confirmed that it intends to outsource a number of business functions, including IT, to outside companies by...

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.

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