Benefit Consultants Group Prepares to Move More Plans Offshore with Info-Drive Software Inc

Third Party Administration firms are moving offshore more and more. The recordkeeping industry will be undergoing major changes in the upcoming years. End Quote

(1888PressRelease) July 17, 2010 - Benefit Consultants Group is preparing to move about 250 more 401(k) plans to an offshore partner for administration and recordkeeping. Bob Paglione, CEO of BCG, confirmed that the Delran, New Jersey-based recordkeeping TPA told The 401kWire that he aims to move the plans to Info-Drive Software by the end of the year.

The move is a natural expansion of two-year partnership between BCG and the Indian outsourcing specialist. Info-Drive already handles all the recordkeeping and administration for about 1,500 of BCG's 401(k) plans.

"We had to find ways to be more profitable," Paglione told The 401kWire, pointing also to other efforts like acquisitions and advertising. "Price is a consideration. This costs about 50 percent less and the productivity level is a bit higher."

Meanwhile, BCG still handles some "out of the box plans" internally, Paglione said, and he's re-focused his own employees on client contact.

"We are able to look at other types of work that normally we do not do," Paglione added, citing a new client with about 13,000 participants (substantially larger than the micro and small plans BCG normally caters to).

"Info-Drive is very easy to work with," Paglione said. "Their goals are the same as ours."

Shiv Kumar, chief operating officer and co-promoter of Info-Drive, noted that the firm works with both recordkeeping and non-recordkeeping TPA partners, across any size retirement plans and multiple recordkeeping software platforms (including Relius and FTWilliam). Info-Drive can also handle accounting and payroll work.

According to Kumar, Info-Drive works with 20 to 25 TPA clients in the US, depending on the season.

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