RP to host IBM competence center for P&G

The Philippines will be the site of IBM’s Global Center of Competence that will commence work effective Jan. 1, 2004 on a landmark $400-million outsourcing contract with Procter & Gamble (P&G).

The 10-year deal with P&G calls for IBM to support almost 100,000 P&G employees in some 80 countries. P&G is outsourcing to IBM its global human resources services such as payroll processing, benefits administration, compensation planning, expatriate relocation services, and human resources data management.

P&G earlier signed a separate global outsourcing pact worth $3 billion with Hewlett-Packard for the management of its IT services.

P&G’s outsourcing deals with the IT giants further streamline the operations of its Global Business Services (GBS) in Costa Rica, England and Manila.

Although P&G has one of its GBS centers in the country, this doesn’t limit IBM to locate its Global Center of Competence for Human Resource Business Transformation Outsourcing (BTO) practice elsewhere, said Jajo Quintos, president of IBM Philippines.

"Still, IBM chose Manila. It’s IBM’s decision to do it in Manila as we look for a delivery center for the service that will be a worldwide-profit center," Quintos said with pride.

IBM didn’t disclose where the center will be located, but said it could eventually be transferred to the business park where IBM Philippines is headquartered. – Alma Buelva