Table of ContentsIntroductionIssuesChangeConclusionIntroductionThis is an interesting case study that I have come across so far. Proctor and Gamble (P&G) is cited as a billion-dollar company with over 300 brands sold in over 180 countries. They serve products from home to hair to health. They have expanded into the household care segment. This case study generally focuses on (GBS) Global Business Services. In 1999, P&G executives made the decision to centralize all non-core functions under a single roof, newly created and named Global Business Services. The GBS Group is a vital and important part of their operational platform. The ultimate goal was to reduce costs by $500 million within 5 years. The support services offered by P&G marked a 10-year milestone. Many international establishments are reviewing this route with curiosity. P&G was able to reduce costs by saving approximately $600 billion by consolidating all back-office functions from FI&A/C (Finance and Accounting), HR, IT, and Facilities Management under one same roof called Global Business Services. (GBS).Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayIssuesGlobal Business Services is an internal service provider unit for P&G. The basic intention behind the creation of this unit was to increase efficiency and reduce costs. The challenges that P&G was going to face were restrictive alternatives: keeping GBS in-house, keeping GBS as a separate entity, outsourcing GBS to one or more companies and the last one was to keep GBS as is and focus on the increase in its effectiveness. If GBS were outsourced, the condition that would apply to suggestions 2 and 3 was that all employees would get full-time employment with the outsourcing company. Change It was the perfect time to change or take a step. P&G was already able to reduce costs and improve service quality through its internal sales capabilities. They paved the way for smooth developments by combining and regulating services, which allowed them to better control the unique expertise of outsourcing partners and strike good deals in terms of agreements. They believed that outsourcing was only possible when your organization was optimized internally. You cannot rely on outsourcing to solve your problems. If your process is not standardized and you rely on outsourcing with the intention of fixing it, that's a bigger mistake. The goal was that outsourcing was about more than reducing future costs and improving service levels. By outsourcing their repetitive work, P&G would not only save costs, but they would also have enough time to focus on more innovative work and place more emphasis on business development/product development. For example, to cover tasks such as infrastructure management and application development, around 2,000 P&G employees in more than 45 countries were transferred to HP. When P&G entered the outsourcing market, its offering was the best in the market. This was due to their strong internal skills. They were easily able to make 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: take the center of.