Cleaning up Outsourcing

P&G takes away some work from India, to cut down on outsourced IT work - The Economic Times: "P&G, whose products include Tide detergent and Duracell batteries, is contemplating the shape and size of the $3-billion (Rs 16,000-crore) contracts that it awarded in 2003 to EDS, which is now owned by HP. People familiar with the US-based company's plans said the reason for P&G's rethink is that it wants to have direct control over crucial portions of the technology piece with implications for its competitive positioning.

While P&G's move does not indicate a trend against outsourcing, the fact that a major technology spender is considering such a move is not good news for India's IT industry, which is forecast to grow just 12-14% in 2013-14.

So far, the part US government-owned General Motors and credit card company American Express are the only other big MNCs that have taken outsourced work back inhouse. "

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