Boston, November 2, 2012 – A new report from Aite Group focuses on firms that provide functional outsourcing services to traditional asset managers and hedge funds. Based on a September and October 2012 Aite Group survey of outsourcing providers, the report reveals an increasing acceptance of outsourcing services, both component and full, among investment firms.
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. Furthermore, due to the potential impact of evolving regulatory requirements, technology and operations managers must prioritize flexibility. Fortunately, when it comes to addressing operational processing, investment firms have more options than ever before—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,” says Lyn Marcrum, senior analyst with Aite Group and co-author of this report. “Aite Group believes that regulatory pressure will become a primary driver for investment managers considering outsourcing some or part of their operations.”
The report profiles BBH, Citibank, HSBC, Northern Trust, and SS&C.
This 38-page Impact Report contains 10 figures and 10 tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report by clicking on the icon to the right.