We recently spoke with Global Custodian about how firms approach the decision to outsource middle-office operations. One area ripe for outsourcing is any area within a firm where a single point of failure presents a risk. This may occur where one employee is affirming trades, or anywhere that risk is concentrated around an activity performed by a single employee. Firms also look to outsourcing to access the latest technology and industry expertise. Outsourcing allows firms to achieve goals they might otherwise find challenging. For instance, when firms are looking to enter new markets, outsourcing enables them to start trading much sooner than they would if they were handling all the operational aspects themselves.
Many firms are apprehensive about outsourcing because they don’t want to lose their sense of control. Firms should choose a provider that can demonstrate transparency and show clients that they can follow the necessary processes. Beyond transparency and expertise, many firms also prefer to work with a provider within their time zone, which minimizes wait times for responses to queries and enables them to speak in real-time to someone familiar with the account.
SS&C has purposely built a global presence to support clients with local service and expertise in any time zone. We offer firms the ability to scale instantaneously, which allows clients to focus on core competencies. Outsourcing with SS&C gives you access to our expertise and technology infrastructure, reducing your fixed overhead.
To learn more about outsourcing for the middle office and how it can help your firm achieve an ideal operating model, download our "Outsourcing Middle- and Back-Office Functions: An Assessment of Perceived Experience" report.