OFFSHORING IN ASSET MANAGEMENT INDUSTRY
In this article we are going to discuss offshoring in asset management industry. There are a couple of six questions a person or company needs to ask himself before selecting an asset management industry service provider. Over the past thirty years, outsourcing has been used by business firms as a business strategy across the world. Outsourcing has though been limited in the asset management industry to non-core activities that are outsourced to record keepers, transfer agents, fund accountants and custodians.
Forces such as newer delivery options, stringent regulatory environment and increasing customer demands are been forcing buy side companies to design and create new and fresh service delivery models. When such scenarios arise, BPO service providers help in increasing competitiveness and profitability by acting as catalysts. Before a company chooses or identifies the right service provider, it should embark on careful consideration on such an outsourcing process. The key and most important 6 questions a company should ask itself in this regard are:
For my products, will the engagement augment manage or reach?
As with all large BPO service providers, they help to deliver services at cost and a committed quality. This helps in creating an exquisite differentiation in terms of enhanced reporting, service timings, geography and product types. In the end free up time and resources to focus on performance of their portfolio.
How much can provider invest?
This is an point question.
Providers with adequate and precise knowledge of the industry create centers of excellence and make investments that solely focus on a pool of building tools, created industry leading points of viewing, develop deep domain competencies and trained resources. With this knowledge that has been acquired from various firms, they have the ability to bring point of understanding and views of the direction of the market, industry benchmarks and best practices to the firm that is outsourcing.
How better are the IT capabilities of the provider?
Many BPO service providers have very good and excellent deals that are offered through software-as-a service, platforms and BPO and utility pricing models. They act as a 1 stop shop to any platforms of service.
Is transformation and automation part and parcel of a provider’s agenda?
Service providers that are successful usually aggressively pursue transformation and automation in order to alleviate the cost of operations.
How flexible is the service provider?
Many BPO providers are able to demonstrate flexibility particularly when they are servicing non-core functions. Such functions include legal process outsourcing, procurement and sourcing and human resources outsourcing. Other areas they are able to show unrivalled and unmatched flexibility is in governance, operating models and terms and conditions of their pricing models.
How proven is the service provider’s track record?
A company can easily the track record of a BPO service provider through market studies, research and historical data. Using all this it can be possible to gauge a service provider reliability and also their adeptness in scenarios such as outsourcing certain key and important functions.