Up Front

Better Get Used to BPO

Outsourcing is here to stay in the asset management industry, according to a recent report by TowerGroup. Asset management companies will continue to focus on business process outsourcing (BPO) through next year. And top-tier custodian banks likely will retain their heavyweight status in the BPO market, despite efforts by large systems integrators to target mid-tier firms with new services such as trade-support functions, exception management and viable BPO options. The custodians' existing relationship with the buy side, coupled with their vast outsourcing experience, will make them the primary go-to source for everything from compliance to connectivity, the report predicts.

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