Top Middle-Office Outsourcing Providers – How Empaxis Compares

Empaxis was named a middle-office outsourcing 'major player' in a recent industry report from DataBridge Market Research, Global Middle Office Outsourcing Market – Industry Trends and Forecast to 2029.

The report extensively covers the industry, including recent developments, growth opportunities, and top outsourcing service providers, among other topics.

While the report provides a great deal of industry insight, we will focus specifically on the service providers and how Empaxis relates.

In addition to Empaxis, here are some other providers mentioned:

  • Accenture
  • BNY Mellon
  • Brown Brothers Harriman
  • Citigroup Inc.
  • Genpact
  • Northern Trust
  • SS&C
  • State Street

If you’re an investment firm planning to outsource or switch vendors, there are different factors you’ll consider. Based on those factors, we’ll share how we stack up relative to the rest.

Top Middle-Office Outsourcing Providers and Empaxis: Points to Consider  

1. Capabilities

Trade settlement, confirms processing, T+1 reporting, P&L reporting, performance and attribution, billing...

If a service provider can't do the job, then nothing else matters. Capabilities are the most important consideration point.

Most larger middle-office providers in the DataBridge report will have the capabilities to perform said tasks, and more.

They'll differentiate themselves based on their reporting dashboards and analytics platforms, leveraging technology to the fullest. And to varying degrees, they have their standout qualities.

Empaxis sees itself a little differently from the others.

Not only do we perform all middle-office related activities, we are highly flexible in the way we operate and use technology.

Empaxis Works with Your Systems, In Your Environment

Empaxis prides itself in being systems-agnostic. That means we work with any systems you're using.

So whether it's Axys or APX, a Black Diamond, a Tamarac, an Orion, or anything else, it's no problem. We have experience with all these portfolio accounting systems and other related software you're using.

Plus, we do it all in your environment, so you maintain the controls and see what we see.

Automation Capabilities

We always look for ways to streamline processes and pass the savings on to our clients. Automation is one of the ways we do that.

It's not enough for us to do what we're told. Clients expect us to take initiative, to make their operation more efficient than it was before.

Report generation, aggregating data, billing/fee calculations... This and so much more can be automated.

Check out our Automation Guide for RIAs. See up to 20 workflows Empaxis will automate for you.

See All Reports and Data in One Place with TAMP1

Empaxis provides middle-office support for your existing systems, but if you've thought about upgrading to a more robust platform, we have a solution: TAMP1.

TAMP1 is a cloud-based turkey platform that lets you and your clients see all investment reports and data in one spot and in real-time.

Powered by InvestCloud, the platform starts out as a data warehouse, designed to seamlessly pull in data from all systems and portals, giving you a more holistic view of the client.

The platform comes with a portfolio accounting and performance reporting engine, and Empaxis does all the daily processing, data management, and system maintenance.

It's software and service together as one.

Check out TAMP1.

Unlike Others, Operations Is Our Sole Focus

For other providers, servicing middle offices (or back offices) is just one of many things they do. Operations may not be even their core strength, and as a result, those providers will not have the most talented and capable people doing the job.

Additionally, if these vendors have clients who are bigger and bring in more revenue than yours, the vendors will consider them "more important" than your firm.

Their other clients will get the A-Team, and if you aren't quite as big of a deal size as they want, the providers will be inclined to give you their B-Team, masquerading as the A-Team.

At Empaxis, operations is our primary focus. You can imagine after nearly 20 years doing this, we've built up a level of expertise you won't find in many other places. Our resources are entirely to devoted to operations, so you will always get our best.

2. Pricing Models

A common approach you'll find with larger investment management outsourcing providers is how they charge for their services.

They typically charge on basis points, or a percentage of assets managed.

Empaxis does not do that. We don't like that approach.

Our pricing is based on volume and complexity of the work, combined with an appropriate amount of hours to get it done.

The workloads are the same for us no matter how well the markets perform. You won't be penalized by paying more when your assets perform well.

Likewise, when markets are down, paying less to the provider is risky business, for them and you. Unpredictable and decreased cashflows threaten their financial stability, which may affect their ability to serve you at the highest level.

3. Size

If you're looking to outsource on a large scale, you might think about the likes of Northern Trust, State Street, or SS&C.

Empaxis may not be quite as big, but we are growing fast, and we are equally capable of providing the breadth and quality of service you'd expect from a large provider.

We already work with some of the largest investment firms and banks around the world. Size is a non-issue when looking at Empaxis.

In fact, we see ourselves in a sweet spot: big enough to serve you, but small enough to where you are not "just a number" to us.

4. Geography and Regional Coverage

Every large provider will have a global presence, including Empaxis.

From Day 1, we've been a global organization. It was the plan all along, and from a client servicing and delivery standpoint, it's been incredibly positive.

We are strategically located in the US, UK, and India, covering all time zones.

Whether you're a hedge fund manager in New York, a wealth manager in London, or a family office in Singapore, we have you covered at all times (24/7).

5. Operations Facilities & Staffing

Most of the major providers in the DataBridge report will have large and secure facilities from which they operate. Empaxis does the same.

However, if they don't have a facility of their own, or if they need extra capacity, they'll partner with a third-party labor provider. That organization will supply them with the talent as needed.

The problem we see with that model is the employees do not belong directly to the provider you're working with.

At any moment, the staffing company can shift their resources, pulling away the support clients relied upon and breaking up continuity.

Empaxis does it differently.

We hire all our employees directly, and we assign them to clients for the long term. At the same time, we have trained backup resources available when someone is out sick or on vacation.

Select the Right Outsourcing Partner for Your Middle Office

Among the 'major player' middle-office outsourcing providers, it's not so much about finding the best one for your firm. It's about finding the right one.

All the providers, regardless of size and location, made it into the DataBridge report because they are capable and qualified in their own right, but some are more suited for your firm than others.

And some of those providers, like Empaxis, have more than meets the eye.

Larger providers, like Northern Trust, SS&C, and State Street, have their strengths and selling points. Empaxis has equal capabilities and credentials, with its own standout qualities:

1. Highly flexible services and a proactive approach

2. A pricing model that works in your favor

3. We are not too big to where you're just a number, but more than big enough to take on high-volume operational workloads

4. Global, 24/7 coverage

5. A team of middle-office experts who work directly for Empaxis, assigned and dedicated to serving you.

As more and more investment firms make outsourcing an integral component of their operating model, finding the right provider is everything. Empaxis is ready to be that partner.

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