Chinese execs keen on outsourcing data management
About 34% of Chief Financial Officers (CFOs) of private capital fund firms in China revealed that they are turning to outsourced providers for data gathering, tracking and analysis to keep up with investors’ increasing demand for data and reporting.
In a report by financial and administrative services provider Interturst Group, the rise of interest in data outsourcing is due to the increasing market complexity in the country.
The volume and frequency of demand from investors have led fund managers to choose between investing in new tech or data outsourcing.
The report also stated that about 46% of China CFOs were expecting their clients to want live or daily updates on portfolio performance. This is likely due to easing concerns around pandemic-related risks.
Outsourcing is becoming a popular option in the country as it removes the ongoing cost of upgrading and maintaining software while ensuring that data reporting will not affect the performance of fund managers.
Meanwhile, 61% of private capital CFOs are expecting their investor to require live or daily information about cybersecurity. This highlights the growing concerns have around data security and cyber-attacks on the funds and portfolio companies in which they are invested.
