The importance of outsourcing operations to the financial industry


Monday, January 20, 2020 | By Daniel Sanchez, Senior Associate, Regulatory Reporting Regulatory & Analytics Solutions

The importance of outsourcing operations to the financial industry

When financial companies seek to outsource operations, they are referring to the process of entrusting an external vendor with certain in-house tasks. These tasks are usually repetitive or mundane in nature but crucial for the day-to-day processes of an organization. Examples of common outsourced operations include accounting, IT services, digital marketing, human resources, etc.

In today’s political landscape, “America First” has made a mark in almost every company’s operational track. This is encouraged by the current administration’s emphasis on bringing jobs back to America and barring companies who are outsourcing jobs abroad to Asia and India. This political push has led many American-based companies to question the importance of outsourcing and even overlook its vital role in operational modernization.

Illustrated by the graph below from the U.S. Bureau of Labor Statistics, there has been a strong increase (roughly a six basis-point jump) in labor costs for employers over the past two years. These rising labor costs, coupled with fierce domestic competition, have pushed companies to restructure and look at other ways to counteract the changing labor environment. Moreover, with the U.S. economy and all of its major Indexes still performing at an all-time high, it is safe to assume that labor costs will continue to increase year-over-year and become an even heavier burden for companies to manage.

 

Graph shows the increase in labor costs between 2017 and 2019

Retrieved December 19, 2019, from Tradingeconomics.com

 

For this reason, financial technology companies like SS&C have developed solutions to help companies modernize their operational load and increase efficiency. SS&C’s Technology and Operations Outsourcing solutions and services offer customizable products that can help any size business transfer essential and/or non-essential tasks to one of SS&C’s state-of-the-art outsourcing hubs. These hubs span India and Asia and comprise over 10,000 highly-skilled employees. Our services are compatible with any type of business and can be fully personalized based on a firm’s preferences. By providing a structured back-office blueprint for companies, SS&C has positioned itself as one of the leading outsourcing partners for companies across the globe. For more information about SS&C’s outsourcing technology and operation visit our outsourcing page.



Alternative Investments


Theme picker