Procter & Gamble expands HP outsourcing deal

Less than a year after signing a 10-year, $3bn IT outsourcing services deal with Hewlett-Packard, consumer products maker Procter...

Less than a year after signing a 10-year, $3bn IT outsourcing services deal with Hewlett-Packard, consumer products maker Procter & Gamble is expanding the original deal to include accounts payable transactions.

P&G said the deal is expected to be signed next month, and will expand the existing IT outsourcing contract the two companies signed last April.

"Our existing alliance and HP's proven ability to innovate makes them a strong fit and an ideal partner for our accounts payable services," said Filippo Passerini, global business services officer at P&G.

"During the past 10 months of our partnership, HP has exhibited a deep understanding of our business, culture and values. Its own business operations are similar in scope and scale, and we are confident that HP can effectively leverage its own experience to help P&G innovate and drive value for consumers and shareholders."

The original outsourcing deal called on HP to manage P&G's IT infrastructure worldwide, including datacentre operations, desktop environments, networks and some application development and maintenance.

About 1,850 P&G employees became HP workers under the original deal.

Last year, P&G also signed several other major outsourcing deals, including a 10-year, $400m human resources contract with IBM and a five-year, $700m deal for facilities management outsourcing with real estate management business Jones Lang LaSalle.

Todd R Weiss writes for Computerworld

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