Managed Services Special Report
Special report focuses on the business benefits of contracting specialist providers to manage mission-critical services.
Click here to download this report
Resentment waiting to Happen?
Given the rate of change across the capital markets and the need for both sell-side and buy-side firms to stay abreast with the latest developments, while simultaneously putting themselves in the best possible position from a technology and operational perspective to take advantage of new business opportunities, it is not surprising that firms of all description are looking to service providers for specialist technology and operational support.
Outsourcing parts of the business to specialist providers has long been a part of the capital markets landscape. After all, why would buy-side and sell-side firms go through the pain and often considerable expense of developing technology and operational expertise in-house when they can partner with a provider whose bread and butter it is to manage those same business processes, and which in many instances already manages identical functions on behalf of other clients as well as or better than they would ever be able to do in-house?
For large numbers of capital markets firms, it's a no brainer - it simply doesn't make operational or economic sense for them to manage largely commoditized business processes in-house, especially when they do not provide them with a competitive advantage.
But in recent years, the activities wrapped around outsourcing and managed services (not to mention the business rationale for entering such relationships) have changed. Now, outsourcing is synonymous with total "lift-outs" and handing over to a specialist functions that have become laborious and overly complex, while managed services is all about accessing and adding specialist functionality, data or applications to an existing technology stack that would simply not otherwise be technically or economically possible. The difference, therefore, is subtle, but significant.
A number of related themes are addressed in this special report, including: how firms should go about evaluating the functions that they can and cannot afford to offload to or take from a service provider; the regulatory and fiduciary implications (and possible restrictions) that need to be considered when contemplating a managed service relationship; the financial, operational and technical benefits that stand to be gained on the back of such services; and the key ingredients that ought to be present in all managed service arrangements. Such partnerships have the potential to yield significant benefits to both parties, but as with all relationships, they are only a few failed promises from souring.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs
Joseph Lo, head of enterprise platforms at Broadridge, joins the podcast to discuss AI tools.
Man Group CTO eyes ‘significant impact’ for genAI across the fund
Man Group’s Gary Collier discussed the potential merits of and use cases for generative AI across the business at an event in London hosted by Bloomberg.
BNY Mellon deploys Nvidia DGX SuperPOD, identifies hundreds of AI use cases
BNY Mellon says it is the first bank to deploy Nvidia’s AI datacenter infrastructure, as it joins an increasing number of Wall Street firms that are embracing AI technologies.
This Week: Linedata acquires DreamQuark, Tradeweb, Rimes, Genesis, and more
A summary of some of the latest financial technology news.
Systematic tools gain favor in fixed income
Automation is enabling systematic strategies in fixed income that were previously reserved for equities trading. The tech gap between the two may be closing, but differences remain.
Euronext microwave link aims to cut HFT advantage in Europe
Exchange plans to level playing field between prop firms and banks in cash equities with cutting edge tech.
Why recent failures are a catalyst for DLT’s success
Deutsche Bank’s Mathew Kathayanat and Jie Yi Lee argue that DLT's high-profile failures don't mean the technology is dead. Now that the hype has died down, the path is cleared for more measured decisions about DLT’s applications.
‘Very careful thought’: T+1 will introduce costs, complexities for ETF traders
When the US moves to T+1 at the end of May 2024, firms trading ETFs will need to automate their workflows as much as possible to avoid "settlement misalignment" and additional costs.
Most read
- Deutsche Börse democratizes data with Marketplace offering
- Sell-Side Technology Awards 2024: All the winners
- Sell-Side Technology Awards 2024: Best sell-side front-office platform—Bloomberg