The Wall Street Journal reports P&G
to outsource 80% of back-office jobs

Procter & Gamble Co. is working on a deal to outsource about 80 percent of its back-office functions, a move that would affect about 5,700 of the company's employees

The Wall Street Journal reports that P&G Chief Executive A.G. Lafley told employees in a June 13 conference call that he expects to make a decision on the outsourcing pact by the end of the year. Sources told The Journal that the deal is worth about $1 billion a year and would last for seven to 10 years. If those figures are correct, it would make the deal one of the largest outsourcing agreements ever.

The 5,700 employees affected by such a deal would be transferred to the outsourcing firm.

EDS and Affiliated Computer Services Inc are in the running for the $1 billion carrot.