>> Are you outsourcing a lot of the development for your software?
>> No, about a quarter of our crew or workforce are directly involved in IT. And I think one place that we're different from other firms is we really have a low level of outsourcing. Today it's about a 10 percent contractor rate. 90 percent of the people are right here at Vanguard and involved with it. And the other element is we probably do more building than most organizations. We're probably about 70 percent build and 30 percent buy in terms of applications.
>> Now that seems unusual to be that big on the build side given so many companies are moving toward common platforms and off the shelf kinds of services or software as a service. So is that something your contemplating to change that mix?
>> I would say not so much as changing the mix as again, we really do try to run the overall portfolio and architecture as one company, and I think that's why we've been able to have such a high level of discretionary spending. Hopefully when you get into great client partnerships, your clients actually have to come to understand the IT piece of the equation. Clients need to understand what three tiered architecture is. Clients need to understand that they don't want to build one op solutions that they actually want to build well architected solutions. And I think we have a great history of doing that, so we truly had to enterprise data across the organization. We have a mid tier that's highly leveraged. We're doing work around service oriented architecture. And our use interface, again, we have a real center for excellence. When you log onto Vanguard if you're in different business we want to have one common look and feel. So we are trying to leverage the technology across the different platforms.
==== Transcribed by Automatic Sync Technologies ====
