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| Case Study |
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Patni-BPO handles multiple process
401(K) services and strengthens client's
competitive strategy |
A 401(K) Plan administration firm enhances its competitive position by establishing a road-map to
offshore its end-to-end processing work to Patni.
The Client
One of the leading online providers of 401(K) plans, specializing in complete electronic plan administration.
The Challenge
The client is focused on delivering a low-cost and efficient technology, investment and record-keeping platform for third party administrators (TPAs).
The client's management team was under pressure to lower its cost structure
and streamline its business process workflow, and had decided upon
offshoring as an option. They wanted to achieve early mover advantage to
create a competitive edge within the Defined Contribution space, by
leveraging offshore outsourcing capabilities of a credible offshore supplier.
However, they had no previous experience of outsourcing, and leveraged
Patni's diagnostic tool kit to identify the processes that could derive the
highest benefits from offshoring.
Once the offshorable processes were identified, the client wanted to move
quickly thru the offshoring roadmap, resulting in extremely tight timelines
for migration of the initial processes.
Also, this being an initial offshoring effort for the client, a lot depended on its
success. Patni needed to create and adhere to a very strict SLA structure with
respect to process accuracy and data confidentiality/security.
The Solution
Patni mobilized its Process Consulting Group to initiate a diagnostic exercise for the client.
This exercise was focused on undertaking a deep-dive analysis and consulting study of the
client's processes and operations. Through the study, Patni and the client jointly identified the
processes that could be offshored initially; and also evolved a two-phased approach to
offshore outsourcing for the client.
The first phase was to create a proof-of-concept, wherein the client could:
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Use Patni's Noida facility on a variable cost (per seat) |
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Experience offshore servicing with minimal risk exposure, before progressing up the
value chain |
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Start Contribution Processing work from offshore |
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Understand how Patni manages the initial security/IP issues around the process. |
After the proof-of-concept ran its course, and validated the expectations that had been set by
Patni, the client management's strategic sourcing team had achieved sufficient buy-in and
trust within the organization for the offshoring initiative. The client was now ready to move to
the second phase of the relationship, wherein Patni creates an offshoring back-end to the
client's operations in North America.
Currently, Patni provides Transition Support Services and all necessary back end support to
the client, while handling multi-process administration for:
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Participant Data management |
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Transaction Processing |
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Pension Accounting and Compliance. |
Services currently provided or in the process of getting transitioned within these
are:
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Plan implementation tasks |
| - Process Initial Census Feed |
| - Process Initial Contribution |
| - Custodial/Trustee Setup |
| - Plan Sponsor Welcome Package |
| - Conversion Data Manipulation |
| - Conversion Reconciliation. |
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Payroll Contribution |
| - Payroll Contribution |
| - Investment Changes / Transfers |
| - Distributions |
| - Loan Requests |
| - Rollovers In |
| - Trade Processing |
| - Cash & Share Daily Reconciliation |
| - Participant e-Chat. |
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Exceeded SLA performance parameters, resulting in Service Credits received from client over and above normal invoiced compensation |
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Process migration time reduced from 6 weeks to 3 weeks |
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Starting with 1 proof-of-concept process,
7 new processes were operated during the
first six months with 8 more processes
planned in the next seven months, to entail
end-to-end 401(k) processing for the client. |
The Benefits
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Significant cost savings and improvement of transaction quality for the client |
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Client's operations moved into a lower cost
structure, giving it a significant edge in the
extremely competitive 401(K) plan administration
market space. |
Client Testimonials
'' We are very pleased with the progress that
has been made thus far with the Secure
Upload process that has been moved
offshore. The offshore team is processing
close to 100% of the contributions being
received through this new technology and
the quality has been virtually perfect.''
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