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Outsourcing contributes to the development of P&G's core capabilities by allowing the company to focus its resources on areas where it excels. By outsourcing non-core functions, P&G can invest more in its core capabilities. Additionally, outsourcing can lead to increased quality and lower costs of business process outsourcing (BPO) solutions due to specialization. It also provides risk mitigation by having multiple partners who can be benchmarked against one another.
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"Passerini saw that specialization could increase the quality and lower the cost of BPO solutions…Plus, there was risk mitigation in having multiple partners, and they could be benchmarked against one another…Finally, outsourcing would free up remaining GBS resources to invest in P&G core capabilities," the book explains.
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Are you playing the game or are you playing to win? Develop a winning strategy for your organization with a recipe for success from former Procter & G...
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