Firms often identify the inability to scale as the primary impediment to launching new products and expanding into additional markets. This obstacle is not merely operational; it is structural. Prioritizing scalability creates structural advantages, enabling firms to grow without diluting margin, respond to investor demand with agility and speed, and build product architectures that support future innovation. In contrast, a narrow focus on cost control risks commoditization, where differentiation erodes and pricing becomes the only lever for competition.
In partnership with Ignites, SS&C surveyed leading global asset managers to learn about their strategic priorities and where they are focusing their scalability efforts today.
Scaling Challenges: A Regional Perspective
When asked about their firm’s biggest impediment to launching new products, survey respondents in every region reported ensuring scalability as the top challenge. Developing systems and operating frameworks that enable the launch of new products and strategies with minimal incremental overhead is fundamental. The objective is to build competitive resilience that endures over time.
Despite a shared ambition, the path to scalability remains highly differentiated by region, shaped by local operational barriers and market structure. The differences highlight the inherent challenge of defining a universal solution or one-size-fits-all approach.
- Asia and Australia: Firms in these regions frequently encounter extended development cycles and face obstacles related to insufficient local market expertise. The diversity of regulations and business practices further complicates efforts to standardize operational processes and systems.
- North America: Here, firms contend with legacy infrastructure and intricate distribution channels, which can constrain the speed and efficiency required for scalable deployment and innovation.
- EMEA: Regulatory complexity and market fragmentation are persistent challenges in this region, often slowing operational harmonization and limiting potential economies of scale.
These nuanced local factors necessitate tailored approaches to scaling operational and distribution models, underscoring the importance of frameworks that are adaptable rather than rigidly uniform by design.
Leveraging External Partnerships
Given the regional complexities surrounding scalability and the varying challenges faced, many firms are outsourcing and partnering externally to more rapidly realize a solution. Outsourcing and technology-enabled service partners are increasingly essential to achieving scale and resilience at speed without unduly inflating cost or operational risk.
To learn more about how leading asset managers are transforming engagement and distribution strategies worldwide, download our "Expansion Under Pressure" report.
