Outsourcing: Investment Management Process and Technology

The triggers for considering outsourcing have changed drastically in the past 10 years.  This is especially true post-recession where the pressure to reduce cost has been equaled by the desire to (1) simplify the investment management process to ensure focus on client service and (2) support new global product growth.  Money managers of all size and strategy are also benefiting from more mature servicing platforms and the rapid introduction of Application Service Provider (ASP) options across the investment management lifecycle. 

But as the reasons for considering outsourcing have grown, so has the complexity in assessing its unique value proposition for each buyer. Regulatory and market structure uncertainty is not unique, but the true drivers of cost and suitability for outsourcing, is. If a decision to outsource is made, a more crowded market awaits firms with a range of full service or component service offerings available; each with a different set of prices, models, and capabilities.

In many ways, the trick to outsourcing evaluation and transformation is to recognize that there is no isolated beginning or end.  What is feasible to outsource today?  Literally any part of the process or platform given the right partner and price. This new reality places more emphasis on finding a partner and advisor to guide the assessment, evaluation, and, ultimately, execution of the newly formed entity while remaining grounded in the true circumstances that brought a manager to the outsourcing market to begin with.

See our detailed description of our services here:  Outsourcing - Reshaping the Investment Management Organization

See our latest Industry Perspective on Middle Office Outsourcing: Assessing Suitability