UBS has canceled its plans to outsource a number of its HR processes because of financial problems related to fallout from the subprime mortgage crisis.
Earlier this year, the Swiss financial services company signed a deal with Affiliated Computer Services to handle its benefits administration for the employees in its U.K. investment banking operations, according to a source familiar with the deal.
UBS had planned to expand that deal to include additional HR processes such as payroll administration for all of its 7,500 investment banking employees in the U.S. and the U.K, the source said. “The expansion of the deal is being put on hold,” the source said.
“ACS does not comment on speculation or on business we may or may not be pursuing,” said Kevin Lightfoot, vice president of corporate communications for ACS. Allison Chin, a UBS spokeswoman, declined to comment.
UBS canceled its plan to go ahead with HR BPO because of the financial problems it is having as a result of the subprime mortgage crisis, a source said. Over the past several months, UBS has written off $38 billion as a result of the subprime crisis.
UBS joins a number of companies backing away from HR BPO deals.