By Lori Walsh, Chief Operating Officer, CPAS, A Xerox Company
The number one priority for government agencies is to serve their constituents. The challenge is that tight budgets have put agencies in a perpetual state of finding ways to do more with less. The solution is in embracing innovation. In the pension industry, sustaining old technology is becoming cost-prohibitive.
Innovative pension administration systems can help you realize significant operational improvements and cost savings. While many plan sponsors and administrators try to maintain the status quo with an older system, the result is counter-productive. More hours and dollars are needed to operate a legacy system than a forward-thinking, scalable, sustainable solution than delivers progressive services to members.
A study performed by SimCorp revealed that legacy investment management systems are under stress and hindering growth. Companies with a patchwork of legacy systems are required to have larger budgets than those with state-of-the-art technology.
Surveying 125 respondents in Europe, North America and Asia-Pacific, the study compared the spending differences between fund firms with older solutions and those with state-of-the-art IT platforms. Most legacy system respondents are increasing their IT budgets to meet intensifying client and market demands, while most respondents with up-to-date systems are maintaining or decreasing their IT spending.
Installing a new system may seem ambitious, but for those with the ambition to evolve along with changes in the industry — and save money — modern technology is the answer.
One of Xerox’s key planks is developing technology through advanced R&D methods. It’s true, technology is born in the research lab but products and services live or die in the real world where people determine their value. That’s why Xerox uses ethnography— qualitative field studies that observe cultural patterns to verify the practical application of technology meets the user’s needs.
Our CPAS v5 advanced pension administration software simplifies administration and record keeping of single and multi-employer plans, for sponsors, administrators, third-party administrators and financial institutions. Adaptable and easy to implement, it’s part of Xerox’s offerings to modernize government with technology that is scalable and sustainable for the future.
This is an important discussion: the role technology plays in modernizing government and pension administration. In future posts, we’ll explore ways to get more value from your investment in technology and the gains employees will receive as they contemplate retirement.
Bottom line, having the right technology will alleviate costs. Investing in an advanced IT system will pay for itself over time through reduced IT budgets, more efficient processes and better service to constituents.