Outsourcing of Procter and Gamble Essay Example

management eases, innovation increase, these form the foundations of correct relationships. In getting a decision on whether to outsource or not relates in depth thoughts on what should be retained or be included in the expectations and the requirements. This, therefore, captures transactional measures, value –based measures into the vendor selection criteria and the service level agreements. This also includes the evaluation of their audit reports, evaluation of service level agreements, coming up with ways to manage risks. This even taps on the cyber security, data privacy, and the necessary legislation (Stock & Lambert, 2001).

In the event of outsourcing, there is a greater baggage that is laid on the shoulders of the providers. Here the vendors play a higher role than the costs play as they sought transformational benefits that come through the cognitive and robotic process. This service levels is managed by the service level providers and also capture merger, scalability, enablement and ultimately the mitigation risk. This culminates to service innovation due to rapidly changing environment.

Reasons for choosing the article

The main reason I selected this company is to make me understand how such an international corporation dare to take such a major step. It was shocking to many people as there has never been another company that has been recorded that has dared do the same thing. The reason that addressed my choice is the great interest and how it made people to be worried of such a daring step. As the fifty brands of procter and gamble brands are well known in the world, this cannot be achieved without a great innovation in many aspects of their corporate business. This is accomplished

through the corporation extending its relationships with all the partners and the suppliers.

Gains of outsourcing

The company changed its approach to research and development, as it called on board the inclusion of ideas from the entrepreneurs, companies, universities and the scientists. This process they referred to it as connect and develop. Its primary goal was to gain ideas that would come from either the inside or the outside of the company so that ultimately procter and gamble would win either way. Therefore, in conclusion, outsourcing is the vital decision where a company decides to benefit from the technical knowledge and expertise gained externally. And hence, for a company to be successful in it, they should work in very high strategic relationships with the best outsource suppliers on the jointly defined corporate priorities.

References

1. Stock, J. R., & Lambert, D. M. (2001). Strategic logistics management (Vol. 4). Boston, MA: McGraw-Hill/Irwin.
2. Gospel, H., & Sako, M. (2010). The unbundling of corporate functions: the evolution of shared services and outsourcing in human resource management at gm. Industrial and Corporate Change, 19(5), 1367-1396.
3. Sako, M. (2010). Outsourcing versus shared services. Communications of the ACM, 53(7), 27-29.jgw254.