The highlights of a survey of the investment administration outsourcing market have been announced. The survey carried out by CityIQ, in association with BNP Paribas Securities Services reveals that:
Over 80% of respondents said that the service they received in the last twelve months was as good as or better than in previous years. Over 65% reported the service received from their provider was as good as or better than when the service was in-house.
Current market pressures were keeping outsourcing firmly on the agenda for investment managers with a significant percentage of managers who have already outsourced in the process of reviewing their current outsourcing arrangements. Cost was seen as being an increasingly significant factor in the outsourcing decision, but with the focus being more on long term cost avoidance than short term gain. While cost was important, more important still was the evidence of executive commitment and the cultural fit between the parties.
A significant percentage of organisations that had outsourced had either increased the size of their oversight team or changed the approach to monitoring performance of their outsourcing partner.
Announcing the findings Paul Wiltshire of CityIQ observed, “These are encouraging results for both the providers and their clients. Service quality has held up, organisations that have outsourced are generally confident that they made the right decision and the market remains buoyant”.
