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What Three Important Benefits Will IBM Receive from Outsourcing Their HR Functions to Fidelity and how Will They Benefit IBM?
On 2 July 2002, Fidelity Investments of Boston and IBM of Armonk, N.Y announced and agreement under which IBM will outsource the administration of its pension program and health and welfare plans, as well as a broad range of its Human resources and payroll services, to Fidelity Employer Services Company (FESCo). FESCo is a business unit of Fidelity Investments. IBM has transferred approximately 750 of its own HR employees to Fidelity, where they will initially have the same responsibilities of servicing IBM's employees and their $56.5 billion pension plan.
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