60% of investment managers eye outsourcing for efficiency
About 60% of investment managers are looking to outsource some of their non-core functions to boost cost-efficiency, a study by financial services company Northern Trust revealed.
According to the study nearly half or 48% of respondents said that they are planning to outsource most of their data management tasks.
Meanwhile, 44% want to explore back office outsourcing and 36% are interested in transferring their trade processing to third-party service providers.
Northern Trust’s report explained the COVID-19 pandemic drove managers to realize the benefits of outsourcing and working with external partners that offer such services.
As for what asset managers are looking for in a third-party firm, Northern Trust’s Head Of Global Fund Services for EMEA Clive Bellows said, “First of all, managers want a provider that is getting the basics right, such as custody, fund accounting, transfer agency and so on.”
“They also look for a stable organization that is committed to the business, who can help them as they start moving into the more value-added areas,” he added.
The Northern Trust survey, conducted by research firm WBR Insights, polled CEOs, CIOs, and other officers worldwide from financial organizations with assets over $500 billion.
