Gartmore Investment Management, the UK-based business of Gartmore Group, is outsourcing its back office operations in London to HSBC.
Under the deal, Gartmore will transfer approximately 105 London-based back office staff to HSBC.
Gartmore, which is the asset management arm of US insurer Nationwide, says the migration of the staff and operations to HSBC will be completed in early 2005.
HSBC will provide Gartmore with a full range of back office services, including transaction processing and related foreign exchange, custody, portfolio and fund accounting, as well as performance measurement for Gartmore's European-domiciled institutional and retail products.
Chris Samuel, COO, Gartmore Investment Management, says: "Gartmore's outsourcing decision is in support of its strategy to focus its resources on investment management and client services."
HSBC says the deal will strengthen its outsourcing proposition to the European investment management industry.
Separately, HSBC is shutting down its service centre in Sheffield and is cutting 182 jobs in a bid to reduce costs, according to a report by Reuters.
The bank will move the centre, which provides administration services for its investment funds business, to Leamington Spa by the end of the year. HSBC already has a centre in Leamington Spa to support its stockbroking operation.
According to the report, HSBC is not ruling out compulsory redundancies but says any Sheffield workers want to work in Leamington Spa are guaranteed a job.