Boston’s financial services company plans to add 375 jobs
Fidelity Investments, the world’s
biggest mutual fund company, said it won a contract to provide
human resources, benefits and payroll services to Bank of America
Corp., the second-largest U.S. bank.
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The seven-year agreement broadens a relationship Boston-based Fidelity had with FleetBoston Financial Corp., which was
bought by Bank of America, Fidelity said in a statement. Bank of
America previously worked with Exult Inc., a firm in Irvine,
Calif., whose shares dropped as much as 26 percent to the
lowest price in 14 months after the announcement.
The arrangement will cover 250,000 employees and retirees at
Bank of America, and will be phased in through January 2006.
Fidelity is trying to increase profits from its computer network
and call centers built to serve mutual fund clients by expanding
into benefits outsourcing. The closely held firm won a contract
for General Motors Corp. last year, displacing MetLife Inc.
“This contract firmly establishes Fidelity as the leading
provider of integrated HR and benefits services to employers,”
Peter Smail, president of Fidelity’s benefits services unit, said
in the statement.
Fidelity, which manages more than $1 trillion, didn’t
provide financial terms of the contract. The company will supply
software and services to Bank of America’s human resources
department, process its payroll and employee records, and oversee
its 401(k) retirement plan. As a result, Fidelity said it planned
to add 375 jobs in its Marlborough, Mass., and Merrimack,
N.H., offices.
Bloomberg News
