NelsonHall, a independent business process outsourcing (BPO) analyst firm, has published its latest research titled “Securities Processing BPO Assessment and Forecast” authored by Andy Efstathiou, research director at NelsonHall.
The report is a comprehensive assessment of securities process outsourcing (Securities BPO) services globally and recommendations for vendors in addressing this market.
“Vendors need to be able to support new market entry and new investment types,” says Efstathiou. “All geographies are experiencing rapid change in the investment products serviced and established markets are changing the mix of products as asset managers search for higher alpha in their returns. Furthermore, emerging economies are rapidly increasing the usage of securities processing services.”
The seven distinct findings revealed in the NelsonHall research report are:
Addressing information needs is the biggest concern for asset managers.
Ability for asset managers to introduce new investment products and invest in new securities types rapidly to drive revenue generation is driving outsourcing of processing services.
Geographical targeting of securities processing BPO is currently localized, but that is changing as vendors are expanding into new countries.
Increasing numbers of de novo asset managers, (primarily hedge funds, private equity funds, and private banks) will be entering the marketplace in all geographies, serviced by third-party providers of operations.
Risk control and reduction is an increasingly important feature of service offerings as the investment industry continues to expand across geographies, faces increasing regulation, operates on new exchanges, and adopts shorter process execution cycles.
Vendors need to be able to manage rapid scaling of workforce size, while maintaining and increasing worker product knowledge to support both new product introduction and new market entry.
Securities processing BPO utilizes very little offshoring of delivery services. However, offshoring is growing much faster than the market as a whole.