Codestone

Category: Support & Managed Services

A growing number of fund management companies will be looking to invest in outsourced IT and other forms of managed services in the coming year.

This is the conclusion of a report from RBC Dexia and Accenture, which stated that companies in this sector are looking for new ways to cut costs due to the low return on equity they are currently experiencing.

According to a survey of around 100 global fund managers, 77 per cent of respondents believe the industry will see a rise in outsourcing in the next three years, which will affect accounting, back-office technology and other areas.

Rob Wright, global head for product and client segments at RBC Dexia, said: "Our research indicates that certain outsourcing strategies could lead to cost savings of up to 20 to 25 per cent for some managers."

Other incentives for outsourcing highlighted by the poll include improved flexibility and service quality.

Earlier this week, Ovum published research showing that the demand for IT managed services contracts worldwide saw a major increase in the final quarter of 2010.

Posted by Jack Gilbert