InvestTech Investment Systems Blog

Insights on Outsourcing Solutions for Investment Managers

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We recently completed a number of outsourcing related initiatives, and have compiled our insights on industry trends and current vendor service offerings for the buy-side of the market.     

1. Outsourcing finally comes of age for the buy-side as seen through a wide range of expanded offerings from small vertical service providers to massive all-inclusive “lift-out” successes.

2. Notwithstanding this momentum, service providers are challenged to present and deliver competitive, coherent outsourcing strategies that cover the full gamut of operations services with a single integrated platform.

3. Outsourcing providers continue to offer customized component-based solutions to fit clients’ needs.

4. Both provider solution offerings and pricing remain competitive as the key vendors drive for market share in the different vertical outsourcing niches.

5. Many outsourcing providers are challenged to achieve multi-tenant cost efficiencies through workflow and process automation vs. traditional resource-based processing models.

6. Outsourcing providers are re-tooling and integrating their offerings to ensure their solution strategy results in a viable end-to-end platform. These efforts include enterprise data management transformation and integration projects designed to provide outsourcing clients direct access to high-quality data services.

7. New players are entering the game from multiple directions via vendor SaaS, extended BSP offerings, new cloud technology-driven services, and through acquiring niche vendor products that enhance offerings.

8. Opportunities continue for providers in the areas of alternative investments, derivatives services, and data management.  These areas are being addressed through heavy customizations and product acquisitions.

We have collaborated with asset managers of all sizes and global reach to carefully evaluate and align the outsourcing provider offerings with their business and technology needs.  Overall, the trends seem to be pointing upward towards continued expansion in outsourcing service offerings. This is likely to drive increased success for attracting new clients into the outsourcing delivery models. Click to read more about our recent project to select an Outsourcing Service Provider

Do you have plans to evaluate outsourcing in the next 12-18 months and what is driving this decision?