As we dive deeper into our research to examine APAC asset managers and hedge funds’ attitudes toward outsourcing the middle and back office, conducted in partnership with Global Custodian, we have identified more interesting regional trends. We’ve already discussed how the US data differed from that reported in the UK and Europe, as well as some overall observations across the Asia Pacific region. Further trends emerge as we continue to separate specific regions and countries, with Singapore, Malaysia, Thailand and Vietnam representing our next group for consideration.
We asked our survey participants about the key factors behind their outsourcing decisions. Singapore, Malaysia and Thailand were fairly aligned, with respondents from all three countries ranking “operational expertise/market experience,” “technology” and “availability of enterprise-wide solutions” among their top factors. Vietnam respondents gave more weight to “cost,” “greater efficiency” and “greater ability to scale.” Thailand participants also cited “greater efficiency” as their top factor. When asked about the factors they look for when purchasing technology, participants from all four countries agreed that “ease of integration with existing systems” was an important consideration. Singapore, Malaysia and Thailand also cited the “ability to access data on a self-serve basis.”
Southeast Asia set to expand outsourcing faster than other APAC regions
While 44.5% of respondents in the US and Europe reported they had increased the number of outsourced functions following their first outsourcing experience, the rate is higher for the APAC region at 62%. Across the four countries in this subsegment, the rate increased even further. In Singapore and Malaysia, 67% of participants reported increasing their outsourcing, while 70% in Vietnam reported the same. Thailand boasted the highest percentage with 78%.
We will continue to share insights and regional nuances from our research. To learn more about attitudes toward outsourcing in APAC, download the "Outsourcing Middle- and Back-Office Functions: Asia Perspective" report.
