Chennai co wins 1st BPO contract in US

Chennai co wins 1st BPO contract in US

Monday, 31 January , 2005

Chennai: Chennai-based Congruent Solutions Private Ltd has become the first overseas company to provide back-end services to a retirement funds consulting firm in the United States. Congruent has tied-up with California-based employee benefits consulting firm Associates In Excellence to provide back-end services including processing works for the 401 k plan, a popular retirement plan in the US, from Chennai.

Congruent has also developed a web-based self-service platform for Associates In Excellence, which would allow several US companies and its employees to join the benefits schemes or track their investment portfolio on the Internet platform. For the last many years, US retirement funds companies have been looking to India for their back office functions, but were hesitant to part with sensitive financial information.

It is estimated that 1.5-2 lakh people work in the US in the technical compliance area in the 401 k industry. The salary cost for these employees is in excess of USD 6 billion every year. The company estimates that around 10 per cent of these jobs will be outsourced in the next five years, translating to 15,000 jobs in India. Indian companies need to provide 100 per cent accuracy when it comes to pension fund process.

To ensure the accuracy, six employees of Congruent have passed the certification exams conducted by Chicago-based National Institute of Pension Administrators (NIPA). Congruent Solutions has also established an US subsidiary to address the growing potential in the US market. Currently, Congruent employs over 80 people and the headcount will be ramped up in the coming months, in line with the increased business.

By outsourcing productions to India, corporations are lowering costs for consumers, keeping inflation low. This raises corporate returns on capital and boosts share prices.

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