Optimizing Investment Management: An Expert’s Guide to Outsourcing Back Office Support

The relentless pursuit of operational excellence and cost reduction has become more critical than ever as investment management firms navigate today’s dynamic financial landscape. In addressing the pain points that the industry grapples with, outsourcing back office support services emerges as a strategic solution. Let’s delve into the pain points and the diverse array of functions that can be seamlessly outsourced to achieve efficiency gains and cost reductions.

Business Challenges in Investment Management

1. Escalating Operational Costs: The industry is experiencing a constant surge in operational costs, driven by the need for advanced technology, skilled personnel, and compliance measures.

2. Resource Constraints: The scarcity of skilled professionals poses a significant challenge, making it difficult for firms to maintain an adept in-house team for all necessary functions.

3. Regulatory Pressures: The ever-evolving regulatory landscape adds complexity to compliance requirements, placing an additional burden on internal teams to stay abreast of changes.

4. Risk of Errors and Delays: The intricate nature of back office functions makes investment management firms susceptible to errors and delays, potentially harming their reputation and client relationships.

5. Time-Consuming Routine Tasks: Routine tasks, such as reconciliations and reporting, consume valuable time that could otherwise be dedicated to strategic decision-making and client-focused activities.

Functions Suitable for Outsourcing

• Asset Servicing
• Fund Accounting & Administration
• Investor Services
• Investor Reporting
• Reporting & Analysis
• NAV Reporting
• Trading & Settlements Support
• Technology & Engineering
• Accounting
• Legal

The Case for Outsourcing Back Office Operations

Strategic Focus: Outsourcing allows CXOs to redirect their focus from routine tasks to strategic decision-making, driving business growth.

Expertise Access: External partners bring specialized skills and industry knowledge, ensuring high-quality service delivery across various back-office functions.

Agility in a Dynamic Market: The flexibility provided by outsourcing allows firms to swiftly adapt to market changes, making them more agile and responsive.

Cost-Efficiency: Outsourcing provides a cost-effective alternative with savings of up to 80%, reducing the financial burden associated with maintaining an extensive in-house team.

Risk Management: External partners contribute to effective risk management by implementing stringent security measures and compliance protocols.

Investment management firms may consider outsourcing back office support services as a strategic imperative. By addressing the pain points through outsourcing, CXOs can position their firms for sustained success and growth in an increasingly competitive and challenging environment.

Infinit-O is the trusted customer-centric and sustainable leader in Business Process Optimization to Small and Medium businesses in the Financial Services, Healthcare and Technology sectors by delivering continuous improvement through technology, data and people.

For more information, visit: www.infinit-o.com