The worlds top mutual fund company has found that tabbing stocks is not the only way to make big money.
For Fidelity Investments, outsourcing has grown so much that it is generating a third of the companys revenues, and the firm does not plan on stopping there.
The company announced yesterday it has added 1,175 new clients and 2.6 million new employees to its benefits outsourcing and human resources services departments alone over the past year, bringing its total to 16.6 million employees receiving administrative help with such outsourcing services as benefits, human resources and payroll.
Fidelity Employer Services President Peter Smail said that five years from now, the outsourcing could make up half of Fidelitys revenue.
"Companies continue to make strategic decisions to consolidate benefits administration, and now, more and more are outsourcing a full range of HR services such as workforce training and development, performance management and staffing," Smail said.
By taking on services that companies simply do not want to pay for, and by becoming more involved in a part of the business that does not rely on the fluctuations of the stock market, Fidelity seems to be headed toward Smails five-year prediction.