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Procter & Gamble, IBM negotiate outsourcing deal
New York, Aug 29: Procter & Gamble Co, maker of Tide detergent and other household goods, is in exclusive negotiations with International Business Machines Corp. for an outsourcing deal in which IBM would take over P&G`s employee services.
New York, Aug 29: Procter & Gamble Co, maker of Tide detergent and other household goods, is in exclusive negotiations with International Business Machines Corp. for an outsourcing deal in which IBM would take over P&G's employee services.
"We are negotiating exclusively with ibm at this time,"
Damon Jones, spokesman for P&G, said.
The companies hope to wrap up negotiations over the next several weeks. Under the potential deal, Cincinnati-based P&G would transfer to IBM about 700 employees who administer P&G's compensation, benefits, payroll and travel services.
The potential value and duration of the employee services contract are subject to negotiation, Jones said.
IBM spokesman James Sciales said it was too soon to quantify the value and duration of the contract but said it would be a long-term pact. Soundview Technology Group analyst John Jones, who follows IBM, estimated IBM's contract to handle P&G's employee services would be worth about $500 million.
He said the length of the contract would probably be at least six years.
Other bidders for the pact were Accenture Ltd. and Convergys Corp. Convergys chief financial officer Steven Rolls said today the company had withdrawn its bid.
Accenture officials couldn't be reached.
Bureau Report
The companies hope to wrap up negotiations over the next several weeks. Under the potential deal, Cincinnati-based P&G would transfer to IBM about 700 employees who administer P&G's compensation, benefits, payroll and travel services.
The potential value and duration of the employee services contract are subject to negotiation, Jones said.
IBM spokesman James Sciales said it was too soon to quantify the value and duration of the contract but said it would be a long-term pact. Soundview Technology Group analyst John Jones, who follows IBM, estimated IBM's contract to handle P&G's employee services would be worth about $500 million.
He said the length of the contract would probably be at least six years.
Other bidders for the pact were Accenture Ltd. and Convergys Corp. Convergys chief financial officer Steven Rolls said today the company had withdrawn its bid.
Accenture officials couldn't be reached.
Bureau Report