5 Things to Expect from an Investment Management Outsourcing Company

//5 Things to Expect from an Investment Management Outsourcing Company

5 Things to Expect from an Investment Management Outsourcing Company

Offering low costs is not what solely defines a great investment management outsourcing company; how well the provider executes, communicates, and treats the staff that serves you are key factors in determining their greatness.

The execution, communication, and staff treatment aspects are all inter-related, and when all three areas are functioning properly, hedge funds, wealth and asset managers can enjoy the lower costs associated with operations outsourcing.

When talking with fund administration outsourcing companies, pay close attention to how they plan to deliver the results and communicate with you. Ask about their staff; get a feel for if the provider is running a sound and harmonious operations.

5 Expectations of an Investment Management Outsourcing Company

Outsourcing and Quality Assurance_EmpaxisConsistent and Quality Reporting Execution

An  will have a company vision, and everything they do will be in support of that vision, which likely involves delivering high-quality reconciliation and reporting services for its clients.

As part of an investment firm, you are who they have in mind serving, and in order for them to execute the vision and give you what you’re looking for in an outsourcing vendor, they’ll take the following measures:

  • Set times each day for reports to be delivered
  • Use process documentation
  • Establish quality control checks
  • Leverage automated technology, including RPA (robotic process automation)
  • Follow Six Sigma methodology

Read More:
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Regular Communication

The best investment outsourcing services providers will initiate communication with you regularly, making sure you’re not only satisfied with the reporting quality, but also that your concerns are addressed quickly.

In addition to regularly scheduled meetings, the outsourcing provider may offer 24/7 availability.

These BPO providers understand that when your middle- and back-office operations functions are being outsourced, you still need to maintain control of the operations. Besides, good outsourcing firms really “fear” and “hate” long gaps of no communication between them and the investment managers they serve. It’s in their interest to seek your feedback.

 Empaxis MeetingIn-Person Visits

Outsourcing means the middle- and back-office operations work will be performed remotely, and while regular communication via voice and video calls are important, face-to-face interaction still has a role to play in the age of the virtual workplace.

The best business process outsourcing providers know the importance of in-person meetings, as being face-to-face allows for both sides to notice the other’s verbal and nonverbal communication cues. Seeing others’ speech and body language reactions gives a full sense of how receptive and understanding people are to each other’s words, and this process results in a rapport and sense of trust between the parties.

Whether you’re meeting with the outsourcing company’s management from the onshore or offshore operations, the in-person visits can help assure you that the provider maintains a clear understanding of your firm’s operational challenges and needs.

Working remotely and teleconferencing works, but the in-person communication solidifies the relationship.

Read More:
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High Respect for Their Operational Staff

The investment management BPO services provider can tell you all about the benefits of outsourcing your middle-office. They can promise to deliver on the reconciliation and performance reporting services, and they can even back it up with documented execution strategies.

But what makes it possible to deliver on the promises is determined by two things:

  1. Having high-caliber portfolio accounting talent
  2. Treating the talent well

Bringing in top talent requires fair, attractive compensation packages, including benefits and performance-based bonuses and raises.

Read More:
Are You To Blame for Poor Back-Office Operations Performance?

In addition to good compensation, investment management outsourcing companies should provide opportunity for skills development and advancement within the organization, which includes higher compensation.

Employees want and deserve to be recognized, and business process outsourcing companies should make sure their staff gets credit where credit is due.

Whether it’s figuring out new ways to leverage RPA (robotic process automation), creating flawless reconciliation reports for a consecutive number of weeks, months, and even years, or simply increasing their skill set on a portfolio accounting software, upper management will acknowledge and praise their staff’s contributions.

Empaxis Employees Having a Great Time_1Team-building activities are another way outsourcing companies keep morale high, and these can be in the form of annual off-site retreats, holiday and birthday celebrations, or company dinners out at a restaurant from time to time.

Collectively, these experiences create a healthier and happier workforce. They also create a greater sense of responsibility and accountability to their colleagues and to you, the investment manager. In this kind of environment, workers are able, willing, and determined to execute the tasks, which means you’ll get consistently higher quality service.

Employee Loyalty

When the staff is treated well, monetarily and otherwise, outsourcing services providers reap the benefits of employee loyalty.

Turnover in any organization is costly, so maintaining a talented portfolio accounting team is a must.

  • Less turnover means fewer resources spent to recruit, hire, and train.
  • Organizational continuity makes it easier to get things done; everyone knows their role and how to successfully complete the work.
  • Money managers are guaranteed experienced and dedicated portfolio accounting specialists to run their middle- and back-office functions, which increases the likelihood of continuing to work with the outsourcing provider.


Read More: 
Financial Services Fee Compression: Your Operations Cannot Afford Idle Employees


Expect and Get the Most Out Of an Investment Outsourcing Firm

Finding the best investment management outsourcing company is not just a matter of getting a low-cost provider. You also want to know about how the outsourcing firm executes, communicates, and treats its staff.

Concrete steps on how to execute are great, and so is regular communication with you, whether it’s through voice or video calls, or in-person meetings. But without the intangibles like good staff treatment and the loyalty that comes with it, you won’t fully reap the benefits of the outsourcing provider.

Talented, happy, and motivated workers can execute more effectively and will be more keen to listening to your needs; it is that glue of continuity within the middle-and back-office outsourcing company that will result in higher quality reports for you.

Once you’ve done your research and have found the low-cost provider that’s firing on the cylinders of execution, communication, and great staff treatment, all of the benefits associated with outsourcing are yours.


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By |2019-01-16T12:36:47+00:00December 13th, 2018|Blog|0 Comments