BMO Financial Group has outsourced its human resource processing to Canada Exult in a ten-year, C$75 million deal.
The agreement will affect approximately 250 positions in Canada and the United States. The "majority of the employees" in these roles will be offered comparable positions within Exult or in other BMO departments, says the Canadian bank.
Under the terms of the contract, Exult will assume responsibility for managing administrative HR services such as payroll and benefits administration, HR call centre management, employee records, and other technology-driven administrative functions.
Rose Patten, EVP, human resources and head, office of strategic management, BMO Financial Group, says the deal will free up the HR department to focus on strategic management issues as the bank retains internal responsibility for talent management, performance alignment and compensation, equity and employee engagement, and learning and development.
"Our HR professionals will focus on adding value to the execution of strategy by providing advice and counsel, oversight governance and development of policy," says Patten.
As part of the agreement, Exult will set up a new client service centre in Canada to serve BMO's Canadian employees.