Asset managers embrace outsourcing culture, Aite finds
Asset managers and hedge funds are increasingly accepting and referring to outsourcing services, both component and full, a report by Aite Group has found.
“As a result of the 2008 market jolt and resulting economic downturn, investment firms have embraced efficiency and cost reduction with renewed vigor. The push to maximize performance returns while continuing to decrease risk has investment managers investigating multiple technology and operational changes, including deep infrastructure modifications,” Aite said.
Due to the potential impact of evolving regulatory requirements, technology and operations managers must prioritize flexibility.
When it comes to addressing operational processing, investment firms have more options than ever before and the technology buy-versus-build decision has been supplemented by outsourcing, and the array of outsourcing services has expanded dramatically.
“Increased regulatory pressure on traditional asset managers and hedge funds has service providers investing in regulatory-specific initiatives. Aite Group believes that regulatory pressure will become a primary driver for investment managers considering outsourcing some or part of their operations,” said Lyn Marcrum, senior analyst with AiteGroup and co-author of this report,”
Photo: types of asset managers using outsourcing services