EI Retirement Right_Sourcing FLORIDA

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EI Retirement Right_Sourcing FLORIDA

  1. 1. Retirement Services<br />RightSourcing<br />1<br />
  2. 2. RightSourcing<br />right·source (rīt′sôrs′)<br />transitive verbrightsourced-·sourced′, rightsourcing -·sourc′·ing<br />to transfer (information technology, operations, administrative activities, etc.) to outside contractors, esp. so as to reduce one's operating costs; <br />to accomplish said transfer and cost reduction without the high risks and management difficulties generally associated with transferring such functions offshore;<br />to combine high levels of subject matter expertise with lower cost onshore wage rates to produce an optimal solution. <br />2<br />
  3. 3. The Emergence of RightSourcing<br /><ul><li>Initial offerings
  4. 4. Initial approaches
  5. 5. Lessons learned</li></ul>The initial movement towards IT and BP offshore resources determined cost/benefit largely and somewhat simplistically on capacity and unit labor costs. After two decades of experience and a good number of studies, large firms now employ a far more sophisticated approach to the onshore/offshore decision. <br />Capacity, unit labor rates and many previously missed and hidden costs along with new unexpected costs are evaluated throughout the decision making process in order to understand and properly prepare for an outsourced solution.<br />3<br />
  6. 6. The Emergence of RightSourcing<br /><ul><li>New developments
  7. 7. Surprising opportunity
  8. 8. Welcome benefits</li></ul>More recently……. US based IT and BPO companies have moved boldly and aggressively to compete with offshore providers. <br />Looked at narrowly, US based unit costs of labor are not quite as low as firms in Asia, but when total costs for outsourced solutions are accounted for, the pricing become quite competitive.  <br />Managerial headaches and the client discontent common in offshore solutions disappear. <br />4<br />
  9. 9. The Emergence of RightSourcing<br /><ul><li>Real alternatives
  10. 10. Still reasons to offshore
  11. 11. Compelling reasons to onshore</li></ul>Now ….. Companies looking at their own internal IT/BPO costs no longer need to choose between keeping the functions in-house and outsourcing to Asia. There are still business functions where the best choice may be to go offshore, but it’s not a given that offshore is the only shore.  <br />Depending on the particular function, company, industry and numerous other factors, onshore solutions may often provide significantly greater productivity, increased levels of quality, service and satisfaction, and reduction in cost and risk.<br />5<br />
  12. 12. Enterprise Iron RightSourcing<br />6<br />Enterprise Iron’s RightSourcing model is grounded in a few basic fundamentals:<br /><ul><li>Outsourced corporate functions benefit most when the trade-off between lowered costs and increased risks is optimized.
  13. 13. Trade-off optimization varies greatly depending on many factors including: industry; function / process type; regulatory and business stability and structure; culture, language, distance, time zones; etc.
  14. 14. Business functions and processes can achieve optimal results by teaming lower cost resources with the right number of industry experts in facilities that exceed requirements in economically friendly onshore regions.
  15. 15. Optimization is synergistic; once transitioned, cost continues to decrease by implementing improvements made possible because the outcomes are greater than the sum of their parts (lower labor rates, industry expertise, facility, economically friendly location and process improvements).
  16. 16. Onshore solutions achieving optimized outcomes can economically compete with offshore solutions while avoiding all offshore downsides (risks, stability, foreign control, client concerns, cultural, lingual issues, etc.).</li></li></ul><li>Offshore Risk<br />The prevailing wisdom among large US firms is that going offshore, while containing higher risks, and often substantial management difficulties, delivers the cheapest labor rates. In some cases, this is correct. This perspective, however, limits possibilities, and narrows vision. <br />It is important to be explicit about the potential avenues of offshore risk:<br />Contract Limitations: US financial institutions run very specific businesses, with a very specific client base. Some client contracts stipulate that outsourcing to foreign entities is not permitted. <br />Fiduciary Risk: In the case of some of the specific, transactional functions, errors in Asia will be paid for in the US. <br />Intellectual Property Protection: Protecting intellectual property (IP) is vital when bringing on an outsourcing firm to work on a proprietary project. Many countries abroad – most notably in the Far East – have gained a reputation for not fully observing copyright laws and legislation relating to Intellectual Property (IP) and identity theft protection.<br />Location, Location, Location: One of the key reasons domestic outsourcing is a more favorable option versus an offshore option is the close proximity of the operation to the firm’s site. <br />Language Barriers: One of the most obvious quandaries of an offshore set-up is the language issue. A North American company dealing with a North American outsourcer can rest assured that both parties will communicate in clear understandable English; the same cannot necessarily be guaranteed when dealing with a foreign entity.<br />Political/Financial Stability: Another value of domestic outsourcing is the political and financial stability in North America. A quick glance at any major newspaper or media outlet will highlight the nefarious actions taking place in many parts of the world.<br />Summary: In the right situations, an offshore outsourcing strategy is a perfectly sound tactic for firms. However, if you’re a North American financial institution, there are multiple factors that have to be taken into consideration when determining an outsourcing solution. With the Enterprise Iron onshore “RightSourcing” solution, processes can be outsourced onshore, delivering considerable savings – both through lower unit costs of labor, and the additional productivity that comes from our deep knowledge of financial operations.<br />7<br />
  17. 17. Offshore Costs<br />Outsourcing business processes and software development to overseas has been around for a number of years, and some of it works well. There are cost advantages with low cost country outsourcing and this is the only advantage that low cost country outsourcing has. But some of these cost advantages may be overestimated.<br />If you make use of a low cost country, outsourcing can save you up to 50%. It is important, however, to fully monetize, and subtract, the additional - often hidden - costs of going offshore:<br />Increased time to deliver services or product: -10%Cultural Interferences:   -5%Additional Travel Costs:   -5%Bad PR and Mitigation costs:   -5%Training and Process Reengineering:  -5%Time Zone Constraints:   -5%<br />Risk (Fiduciary and Operation): -10%<br />The savings firms see when they look only at per-unit labor costs drop substantially when the full costs of offshore outsourcing are added to the equation. <br />8<br />
  18. 18. The EI RightSourcing SolutionRobust & Secure Facilities, Rapid Deployment, Sustainable Savings<br />9<br />
  19. 19. The Enterprise Iron Facilities<br />10<br />The United States<br />The Enterprise Iron facilities are all onshore in the United States, and are staffed by US workers. Primary locations are in Florida. <br /> <br />Security<br />Locations are secured at levels that meet – and often exceed – the best-practices standards expected in the financial services industry. <br /><ul><li>24/7 security guards onsite.
  20. 20. Logged key card entry into both the building, and (if required) into client workspace within the building.
  21. 21. Fully isolated clean rooms can be arranged – lockers are available.
  22. 22. Server rooms have highly restricted access.
  23. 23. Annual SAS 70 Type 2 Audits assure compliance with the business practices and procedures required by financial services clients.</li></ul>Business Continuity<br />Locations all have site-specific Business Continuity and Disaster Recovery plans. The plans are actively updated, and periodically tested. <br />
  24. 24. The EI Model: Management<br />11<br /><ul><li>Enterprise Iron utilizes the low wage rates and high productivity of employees in carefully selected US locations – producing basic operations that are much less expensive than the in-house costs our clients pay.
  25. 25. Enterprise Iron manages those employees with high level managers – generally using teams of ten, including one senior SME and nine lower cost employees.
  26. 26. The blended rate of these teams is slightly higher than the costs that might be obtained offshore in Asia, but this unique model unleashes possibilities for both additional cost savings, and higher client satisfaction, through:</li></ul>Faster deployment of the solution;<br />Much higher productivity per unit of labor;<br />The ability to optimize client processes;<br />The ultimate goal of combining highly trained and well managed employees, using optimized processes, to reduce the total number of people required to achieve the same production.<br />
  27. 27. The EI Model: Transition<br />12<br />Enterprise Iron uses a flexible, proprietary transition process called “T-Link” to move client business functions to its facilities. <br />STABILIZE <br />OPTIMIZE<br />INSTITUTIONALIZE<br />Strategic<br />Approach<br />Parallel<br />Operations<br />Migrate<br />Monitor<br />Parallel<br />Operations<br />Migrate<br />Monitor<br />EI Site <br />Readiness<br />Transition<br />Planning<br />Transition<br />Pilot<br />EI Site <br />Readiness<br />Stages<br /><ul><li>Current State</li></ul> assessment<br /><ul><li>Develop transition plan
  28. 28. Staff planning, skills review
  29. 29. Pricing
  30. 30. Site visit
  31. 31. BCP Plan
  32. 32. Establish Pilot team
  33. 33. Document all processes
  34. 34. Knowledge transfer of applications & tools
  35. 35. Develop & deliver training
  36. 36. Establish communication process for Client home and onshore teams
  37. 37. Technology & comms setup
  38. 38. OJT for Pilot team at client locales
  39. 39. Continue with training for each tranche of on-boarded personnel
  40. 40. Build-out for Operations readiness
  41. 41. Implement & test comms, technology, security, access
  42. 42. Test disaster recovery
  43. 43. Develop SLAs
  44. 44. Develop SOPs
  45. 45. Overall Operations
  46. 46. Problem Escalation
  47. 47. Reporting Systems
  48. 48. SystemsTools/user manuals
  49. 49. Metrics
  50. 50. Pilot team returns to train new recruits in EI facility
  51. 51. Shadow and “buddy” system established
  52. 52. Previous agreed upon transfer of plans and processes are cut over
  53. 53. Validate transaction processing, establish metrics and refine service levels
  54. 54. Complete migration of teams and processes to EI facility
  55. 55. 100% volume transfer
  56. 56. Reviews and audits conducted
  57. 57. Formal client reporting established
  58. 58. Change and Process Improvement program assimilated into daily operations</li></li></ul><li>RightSourcing Services<br />Enterprise Iron offers three types of RightSourcing, designed to fit your unique needs<br />13<br /><ul><li>An entire business function is moved to our onshore facilities.
  59. 59. All management and processing is handled by Enterprise Iron staff.
  60. 60. Client has known costs, and productivity is assured by detailed SLAs.
  61. 61. A business function is partially moved to Enterprise Iron facilities.
  62. 62. Combines client and Enterprise Iron management and staff to optimize processes.
  63. 63. Client has flexibility to expand or contract staff for seasonal or market fluctuations.
  64. 64. Additional Call Center support is available for client facing processes.
  65. 65. Expertise and management of business processes are shared with the Call Centers, enabling 2nd and 3rd level escalation support.
  66. 66. Bilingual (Spanish) support possible.</li></li></ul><li>EI Retirement RightSourcing<br />14<br />
  67. 67. Retirement RightSourcing<br />Operations Production (Pay-In and Pay-Out)<br />Execute enrollments, contributions, asset transfers and withdrawals for Pension and IRA product clients while meeting service level agreements.<br />Enrollments<br />Contributions <br />Asset Transfers<br />Withdrawals<br /> <br />Production Support and Controls<br />Continuously monitor controls, and identify and eliminate defects in client production environments. Serve as a central organization to perform independent quality assurance, root cause analysis, investigations, data aggregation and implement improvements.<br />Participant Cash Operations <br />Tax Operations <br />Quality Risk and Controls <br />Operations Customer Care <br />Participant Values and Centralized Adjustments <br />Operations Analysis and Implementation <br />Transactional Integrity and Investigations<br />15<br />Enterprise Iron, with its considerable experience in the highly specialized field of Retirement Services, is capable of providing superlative value to its clients. Potential candidate functions for our Retirement Services RightSourcing include:<br />Plan Sponsor Services<br />Support and seamlessly deliver new regulatory capabilities, products and services in the Institutional & Individual Operations unit. Defining, implementing and continuously improving service commitments clients have with their institutional clients.  <br /><ul><li>Plan Audits
  68. 68. ERISA 5500 Plan Reporting
  69. 69. Operations Support of the RFP Process for New Institutional Mandates
  70. 70. New Plan, Product and Service Implementations</li></ul> <br />Decision Support<br />Enable client Operations teams to meet their goals with support in the following functions: <br /><ul><li>Training and Communications
  71. 71. Procedure Documentation
  72. 72. Metrics Reporting
  73. 73. Program and Project Management</li></ul> <br />Treasury Operations<br />Ensure that all Individual and Institutional Participant cash transactions are processed timely and accurately. Additionally, support daily fund trades, trade settlements, dividend, and capital gain allocations, as well as verify tax withholdings and facilitate reporting to participants and regulatory agencies.<br /><ul><li>Participant Cash Contributions / Distributions
  74. 74. Tax Operations
  75. 75. Fund Operations</li></li></ul><li>Contact Enterprise Iron<br />For more information see our website:<br /> http://www.eifis.com<br />Contact Information:<br />485C Route 1 South<br /> Suite 350<br /> Iselin, New Jersey 08830<br />Email: info@eifis.com<br />Phone: +1.888.242.4682<br />

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