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 …

…doing the same types of partnerships in the future. Imagine McDonalds and Hoover partnering up to offer burgers and Liposuction while you wait. Want fries with that? References 1. Dale, Arden "Substantial Benefits", Fidelity Workplace Services, Fidelity Investments L.L.C., 20 May 2003 2. Jones, Amanda, "Fidelity scopes Triangle for large office space to consolidate ops", Triangle Business Journal, June 9, 2003 3. Cooper, Kathie, "Judge in IBM Pension Suit says he will rule in 'Weeks'", Dow Jones Business News, 3 July 20