Fonchim: Business Process Outsourcing

Fonchim was the first fund established under Italy's new pension laws, and has remained at the forefront of the sector. With 115,000 members employed by 1,800 pharmaceutical and chemical companies, it is the country's second-largest pension fund.

When the government reformed its pension laws in the 1990s, Fonchim had to get off the ground with a relatively small base of members, who alone were financing the fund. The establishment of its own processing facility would have placed a heavy burden on its finances. The best way to meet the new legal requirements, while from the outset providing a cost-effective service to its members, was to outsource its administration and information technology operations.

Accenture was the obvious choice. It had partnered with one of the leading banks in Italy, Banca Nazionale del Lavoro, to form Accenture Pension Services (APS). APS had worked with Microsoft and Avanade to develop the Fondi Pensione platform, which today serves 15 funds with 600,000 members and more than 20,000 employers. APS was the first—and remains the leading—pension fund BPO provider in Italy.

Fonchim's pension fund management outsourced much of its back-office processing, applications management and service provision, and IT operations to APS. It also has access to a Web interface that allows members to view their reserve positions online. The fund has benefited from world-class pension administration processes which, because they are managed on a shared platform, are provided at a lower cost than would otherwise be attainable. Our zero latency model, together with its Web-based design, means all stakeholders enjoy easy access to up-to-the-minute information.

"By providing us with a reliable and efficient administration service, Accenture Pension Services has helped us focus on customer satisfaction in terms of service quality, on financial management and on the asset custody requirements of pension reform. It's been a challenging time for us, but we've emerged with a stronger balance sheet and more satisfied members."
—Andrea Girardelli, General Manager, Fonchim