Cincinnati, Sept 11: Procter & Gamble Co (P&G), building on its effort to hire out some services under multi-year contracts, said it has signed IBM to a 10-year, $400 million deal to handle employee services. IBM will support almost 98,000 P&G employees in nearly 80 countries with services such as payroll processing, benefits administration, compensation planning, expatriate and relocation services and travel and expense management.

IBM has said that it also will provide application development and management of P&G's human resources systems.
The agreement is effective on Jan one when IBM takes over operation of human resources service centres in San Jose, Costa Rica; Newcastle, England, and Manila, Philippines.

P&G said the arrangement will allow it to cut costs and focus on its core businesses.
The deal with IBM is the third major outsourcing deal signed by P&G this year. Bureau Report