Index IntroductionIssuesThe ChangeConclusionIntroductionThis is an interesting case study I have come across so far. Proctor and Gamble (P&G) is cited as a billion-dollar company with more than 300 brands sold in more than 180 countries. We need products from home to hair to health. They have spread their hands into the home care segment. This case study typically focuses on global business services (GBS). In 1999, P&G executives made the decision to centralize all non-core functions under a newly created single roof called Global Business Services. The GBS Group is a key and important part of their operating platform. The ultimate goal or objective was to reduce costs by $500 million within 5 years. P&G's support services have reached a 10-year milestone. Many international institutions are retracing this journey with curiosity. P&G was able to reduce costs by saving approximately $600 billion by combining all back-office functions, directly from FI & A/C (finance and accounting), human resources, IT department and facilities management under one roof called Global Business Services (GBS). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayIssuesGlobal Business Services is an internal services delivery unit for P&G. The intention behind the creation of this unit was to increase efficiency and reduce costs. The challenges that P&G would face were restrictive alternatives: keeping GBS in-house, keeping GBS as a separate entity, subcontracting GBS to one or more companies and the last one was keeping GBS as is and focusing on increasing its efficiency. If GBS was outsourced, the applicable condition for suggestions 2 and 3 was that all employees would get full-time jobs at the outsourcing company. The Change It was the perfect time to change or make a move. P&G was already able to reduce costs and improve service quality through its internal business capabilities. They have pioneered smooth evolutions by combining and regulating services that have helped them further control the unique expertise of subcontractor partners and strike good deals in terms of agreement. They believed that outsourcing is only possible when the organization is optimized internally. You can't rely on outsourcing to solve your problems. If your process is not standardized and you rely on outsourcing with the intention of fixing it it is a bigger mistake. The goal was that outsourcing was not limited to future cost reduction and improved service levels. By outsourcing repetitive work, P&G would not only save costs, but also have enough time to concentrate and focus on more innovative work and place more emphasis on business development/product development. For example, to cover aspects such as infrastructure management and application development, approximately 2,000+ P&G employees in more than 45 countries have been transferred to HP. When P&G entered the outsourcing market, its package was the best offering on the market. This was due to their strong internal expertise. They easily managed to submit a good offer so that their employees were offered jobs by the contracting company. The transaction went so well that their own employees became their service providers. For example: Consider P&G's service center that was based in Costa Rica. Aside from the badge change, the employees didn't even realize they were transferred from Costa Rica to San Jose. One thing.