Back to basics: Money managers look at systems outsourcing; Large firms emphasizing investment skills, leaving back-office technology to the experts.(Asset management sector faces tighter profit margins)(Statistical Data Included)

Pensions & Investments, January, 2002 by Williams, Fred

Asset management firms getting back to investment basics could set off a tidal wave of systems outsourcing in coming months. Tighter profit margins in the face of shrinking revenues and the growing need for speed in securities processing are making executives at many large firms at least consider outsourcing their back-office operations, according to industry experts.

And outsourcing providers are counting on it. Industry sources think the stage is set as money managers emphasize investment management skills and let the experts handle the back-office technology. Outsourcing allows money managers to cut capital spending on operations technology and, in some cases, reduce headcounts by turning over operations to outside providers that specialize in delivering...

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