The document discusses RightSourcing and Enterprise Iron's retirement services RightSourcing model. It defines RightSourcing as transferring functions to lower-cost domestic contractors to reduce costs while avoiding risks of offshore outsourcing. Enterprise Iron's model uses a South Dakota location with educated employees, security, and network capabilities. It discusses full, collaborative, and call center RightSourcing options and retirement services functions that can be RightSourced like operations, plan sponsor services, and treasury operations.

1. Retirement
Services
RightSourcing
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2. RightSourcing
right·source (rīt′sôrs′)
transitive verb rightsourced-·sourced′,
rightsourcing -·sourc′·ing
to transfer (information technology,
operations, administrative activities, etc.)
to outside contractors, esp. so as to
reduce one's operating costs;
to accomplish said transfer and cost
reduction without the high risks and
management difficulties generally
associated with transferring such
functions offshore;
to combine high levels of subject matter
expertise with lower cost onshore wage
rates to produce an ideal solution.
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3. The Emergence of RightSourcing
 Initial offerings
 Initial approaches
 Lessons learned
In a word…… 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 cost
benefit approach to the onshore/offshore decision.
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.
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4. The Emergence of RightSourcing
 New developments
 Surprising opportunity
 Welcome benefits
More recently……. US based IT and BPO companies have moved boldly
and aggressively to compete with offshore providers.
Looked at narrowly, US based unit costs of labor are not quite as low as
firms in India and China, but when total costs for outsourced solutions are
accounted for, the pricing become quite competitive.
Managerial headaches and client discontent common in offshore
solutions, disappear.
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5. The Emergence of RightSourcing
 Real alternatives
 Still reasons to offshore
 Compelling reasons to onshore
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.
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.
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6. Enterprise Iron RightSourcing
Enterprise Iron’s RightSourcing model is grounded in a few basic fundamentals:
 Outsourced corporate functions benefit most when the trade-off between lowered costs and increased
risks is optimized.
 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.
 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.
 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).
 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.).
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7. Offshore Risk
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.
It is important to be explicit about all the potential avenues of offshore risk:
 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.
 Fiduciary Risk: In the case of some of the specific, transactional functions, errors in Asia will be paid for in the US.
 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.
 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.
 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.
 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.
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.
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8. The EI RightSourcing Solution
Robust & Secure Facilities, Rapid Deployment, Sustainable Savings
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9. The Enterprise Iron Facilities
South Dakota
After considerable research, Enterprise Iron chose South
Dakota as the location for its RightSourcing offering due to
a combination of characteristics that make it unique. Red
tape is minimal. Taxes are low. Private sector vendors are
quick, and extremely responsive. Crime rates are among
the lowest in the nation.
South Dakota Labor Pool
In short, overall about 60% of South Dakota’s work force
has education beyond high school and only 10% of the
workforce does not have at least a high school diploma. To
bring this into perspective, the high school drop-out rate is
only 1.2%, and 89% of graduating seniors go on to higher
education. Our employees are intelligent, come from a
community with a cultural tradition that values hard work,
and all have English as a first language.
South Dakota Facilities
Our primary location is a seven story building with modern
employee elevators. Alarm systems are in place and
regular fire and emergency evacuation drills are held. The
building has a 15KW generator that will power the entire
facility if a power interruption occurs. A robust Business
Continuity Plan is in place, and its various elements are
tested on an annual or biannual basis.
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10. The Enterprise Iron Facilities
Security
Our current baseline setup has each floor
accessible only with a magnetic key. The elevators
are also controlled in a manner in which only
authorized personnel can enter the specific floors
that they work on, again via magnetic key. The
building, however, is configured in such a way as to
be extremely flexible. Security vendors are in place,
and any additional security required by a client can
be installed and configured rapidly. If desired,
security guards can be assigned.
Bandwidth & Network Capabilities
We currently have our bandwidth set at 20Mb, and
can, with a phone call, increase that to 50Mb, a
100Mb, 1Gb, and upwards for both upload and
download. This connection is also SONET ring
protected by the bandwidth provider for failover and
redundancy of the entire network. A VPN
connection can easily be setup between client
locations and our facility. The building is intelligently
networked, with equipment and software suitable to
provide network security at the high levels required
by our financial industry clients.
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11. The EI Model: Management
 Enterprise Iron utilizes low wages rates and high productivity of South Dakota
employees – producing basic operations that are much less expensive than the
in-house costs our clients pay.
 Enterprise Iron manages those employees with high level managers –
generally using teams of ten, including one senior SME and nine lower cost
employees.
 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:
1. Faster deployment of the solution;
2. Much higher productivity per unit of labor;
3. The ability to optimize client processes;
4. 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.
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12. The EI Model: Transition
Enterprise Iron uses a proprietary transition process called “T-Link” to move client business functions to its
facilities.
Strategic STABILIZE OPTIMIZE
INSTITUTIONALIZE
Approach
Transition Transition EI Site Parallel
Stages Operations Migrate Monitor
Planning Pilot Readiness
• Current State • Document all • Build-out for • Pilot team returns • Complete migration • Reviews and audits
assessment processes Operations to train new recruits of teams and conducted
• Develop transition • Knowledge readiness in Millbank processes to • Formal client
plan transfer of • Implement & test • Shadow and Millbank reporting
• Staff planning, applications & comms, technology, “buddy” system • 100% volume established
skills review, tools security, access established transfer • Change and
• Pricing • Develop & deliver • Test disaster • Previous agreed Process
• Site visit training recovery upon transfer of Improvement
• BCP Plan • Establish • Develop SLAs plans and program assimilated
• Establish Pilot communication • Develop SOPs processes are cut into daily operations
team process for Client • Overall Operations over
home and • Problem Escalation • Validate transaction
onshore teams • Reporting Systems processing,
• Technology & • SystemsTools/user establish metrics
comms setup manuals and refine service
• OJT for Pilot team • Metrics levels
at TC locales
• Continue with
training for each
tranche of on-
boarded
personnel
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13. RightSourcing Services
Enterprise Iron offers three types of RightSourcing, designed to fit your unique needs
 An entire business function is moved to our
onshore facilities.
Full  All management and processing is handled by
Rightsourcing Enterprise Iron staff.
 Client has known costs, and productivity is
assured by detailed SLAs.
 A business function is partially moved to
Enterprise Iron facilities.
Collaborative  Combines client and Enterprise Iron
RightSourcing management and staff to optimize processes.
 Client has flexibility to expand or contract staff
for seasonal or market fluctuations.
 Additional Call Center support is available for
client facing processes.
Call Center  Expertise and management of business
processes are shared with the Call Centers,
RightSourcing enabling 2nd and 3rd level escalation support.
 Bilingual (Spanish) support possible.
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14. EI Retirement RightSourcing
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15. Retirement RightSourcing
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:
Operations Production (Pay-In and Pay-Out) Plan Sponsor Services
Support and seamlessly deliver new regulatory capabilities,
Execute enrollments, contributions, asset transfers and
products and services in the Institutional & Individual Operations
withdrawals for Pension and IRA product clients while meeting
unit. Defining, implementing and continuously improving service
service level agreements.
commitments clients have with their institutional clients.
 Enrollments  Plan Audits
 Contributions  ERISA 5500 Plan Reporting
 Asset Transfers  Operations' Support of the RFP Process for New Institutional
 Withdrawals Mandates
 New Plan, Product and Service Implementations
Production Support and Controls Decision Support
Continuously monitor controls, and identify and eliminate defects in Enable client Operations teams to meet their goals with support in
client production environments. Serve as a central organization to the following functions:
perform independent quality assurance, root cause analysis,  Training and Communications
investigations, data aggregation and implement improvements.  Procedure Documentation
 Participant Cash Operations  Metrics Reporting
 Tax Operations  Program and Project Management
 Quality Risk and Controls
Treasury Operations
 Operations Customer Care Ensure that all Individual and Institutional Participant cash
 Participant Values and Centralized Adjustments transactions are processed timely and accurately. Additionally,
 Operations Analysis and Implementation support daily fund trades, trade settlements, dividend, and capital
 Transactional Integrity and Investigations gain allocations, as well as verify tax withholdings and facilitate
reporting to participants and regulatory agencies.
 Participant Cash Contributions / Distributions
 Tax Operations
 Fund Operations
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16. Contact Enterprise Iron
For more information see our website:
http://www.eifis.com
Contact Information:
485C Route 1 South
Suite 350
Iselin, New Jersey 08830
Email: info@eifis.com
Phone: +1.888.242.4682
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