Fidelity, IBM to offer benefits outsourcing services
BOSTON- In an effort to boost revenues, Fidelity Investments and IBM have announced plans to manage the employee benefit plans of other companies. Payroll and benefits services will be offered to large employers, including government agencies and major nonprofit organizations. Fidelity would provide the benefits expertise while IBM would support the computers and database. The companies expect benefits outsourcing to grow into an industry with $43 billion to $45 billion of annual revenue by 2005. While terms of the agreement were not disclosed, as part of the agreement, Fidelity will administer IBM.'s benefits and will lease a call center in Raleigh, N.C., to field questions about retirement, health, charitable giving and other benefits. Effective August 1, the 450 IBM workers in Raleigh will become Fidelity employees. Fidelity Employer Services Company provides retirement, human resources and benefits strategies to 11.2 million American workers through the administration of more than 11,100 retirement, pension, health and welfare, human resources administration and payroll programs.