Read the case study on Proctor and Gamble – A Model of Innovative Outsourcing.
Answer the following questions:
How did P&G’s decision to centralize and standardize global business services in the 1990s enable it to effectively outsource business services starting in 2003?
How has outsourcing benefited both P&G and its strategic outsourcing partners?
How does P&G’s strategic alliance management system help it avoid the pitfalls of outsourcing? What risks does the system not address?
Procter and Gamble generated $83 billion in sales worldwide in 2013. What advantage does this give it in negotiating outsourcing contracts with its strategic partners? Can smaller companies achieve similar outsourcing success with a smart outsourcing strategy? Why or why not?
What lessons can large companies and governments take away from P&G’s success with outsourcing?
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