Procter and Gamble (P&G) has signed a $400m (£249m) agreement with IBM
to outsource its global HR services.
Under the deal, IBM will provide the retail goods giant with benefits
administration, compensation planning, expatriate and relocation services, travel
and expense management and human resources data management.
IBM will also provide payroll processing as well as application development
and management of P&G’s HR systems which serves nearly 98,000 employees in
almost 80 countries.
Approximately 800 P&G employees will be offered employment with the IBM
HR Business Transformation Outsourcing (BTO) team as part of the 10-year deal.
The agreement is expected to become effective on 1 January, 2004 when IBM
will take operational responsibility for three HR shared-service delivery
centres – at Newcastle and the others in the Philippines and Costa Rica.
Other personnel in more than 25 other countries, will also be integrated
into IBM’s global network of BTO service centres.
IBM Business Consulting Services managing partner Ginni Rometty said:
"Leading companies such as Procter & Gamble are increasingly using
business transformation outsourcing as a tool to drive strategic value.
‘This allows them to become more flexible and adaptive while focusing employees
on the company’s core competencies."