Procter & Gamble expands outsourcing deal with HP

FRAMINGHAM (03/16/2004) - Less than a year after signing a 10-year, US$3 billion IT outsourcing services deal with Hewlett-Packard Co., consumer products maker Procter & Gamble Co. Tuesday said it will expand the original deal to include accounts payable transactions.

In its announcement, Cincinnati-based P&G said the expanded deal is expected to be signed next month. No price tag for the additional services contract was released.

The deal 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," Filippo Passerini, global business services officer at P&G, said in a statement. "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 data center 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, $400 million human resources contract with IBM Corp., and a five-year, $700 million deal for facilities management outsourcing with real estate management business Jones Lang LaSalle Inc. in Chicago.

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