Current market conditions have created unprecedented challenges for Canadian investment managers. As these managers develop strategies to face off to such challenges as cost pressures, quality concerns, and risk mitigation, Beacon believes firms need to consider the business case for outsourcing. Recent product and service innovations in the outsourcing space are positioning these offerings as cost effective alternatives to in-house solutions. The combination of lower fixed costs, integrated platforms, improved implementation timelines, and enhanced functionality are compelling reasons to consider the alternatives available in Canada. Options include component solutions that address todayâs most pressing operational challenges including derivative processing, collateral management, client reporting, and data management. In addition, technology providers are increasingly providing products and services that also minimize the burden of high fixed cost internally supported software.
âAdded focus on the investment management process, lowered fixed costs, and speed to market are among the potential benefits of a revamped operating model,â said Peter OâConnell, Managing Director of Beacon Consulting Group. âWhile there is no single solution, a target operating model that incorporates leading edge outsourcing solutions offers significant promise and should be evaluatedâ.