Indian Company Bags First Outsourcing Deal in US Pension Industry

Filed in archive Outsourcing News on January 31, 2005

congruent Solutions Pvt. Ltd. is the first company to provide back-end services to a US retirement fund consulting firm. The company will process 401-K retirement plans for California-based Associates In Excellence. Additionally, it has developed a web-based, self-service platform wherein US employees will be able to join benefits schemes and track investments online.

US retirement funds companies have already outsourced its back-office operations to India, but have been hesitant to part with sensitive financial information. Bala J. Raman, Congruent Solutions president said, "We are the first company... to sign a contract for outsourcing processing works for a retirement benefits company in the US."

In the US, about 200,000 people work in the 401-K Industry with a combined yearly salary of $6 billion. Bob Thurlow, Associates In Excellence president said, "Our estimate is that around 10 per cent of these jobs will be outsourced in the next five years, translating to 15,000 jobs in India."