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18 December, 2012 by

Outsourcing: Increase Profitability and Decrease Spending

In a recent CEB TowerGroup survey, 85% of senior wealth management executives indicated that boosting profitability was either a high or critical objective for the next 6 to 12 months.  In a climate of volatile investor confidence, firms must not only achieve top-line growth, but must also cut costs in order to increase profitability.  Increasing cost pressure from regulations and technology upgrades have caused US banks to struggle to preserve their margins.  Despite efforts to reduce spending, many banks continue to face cost pressures as they wait for the demand for commercial and consumer loans to fully recover. 

In the meantime, outsourcing is a prime opportunity for cost-conscious wealth management firms that are hesitant to cut essential client or employee services.  More than one third of finance CEOs expect to outsource a business process in the next twelve months, and CEB TowerGroup estimates that the total spend on outsourcing will grow at an 11% CAGR through 2015 with BPO, cloud, and managed services taking up an increasing share of the total.

To understand the major players in this space and their offerings, wealth management firms should consult the Outsourcing Vendor Analysis, which profiles 14 vendors including 6 mega vendors with more than $10B in revenue, 6 mid-size vendors, and 2 small vendors with under $200M in revenue.

Wealth management executives can learn more about the current outsourcing vendor landscape and make better informed decisions by utilizing the four distinct components of the report.  These components include:

  • Current Market:  Read about the current landscape of and business drivers for outsourcing.
  • Future Investment:  Anticipate projected spend in outsourcing and learn about the emerging technologies that will shape the industry in the future.
  • Vendor Landscape:  Choose from a list of key technology firms offering outsourcing solutions and use the 24 attributes in our diagnostic anatomy to better define their investment priorities.  Our profiles allow executives to compare offerings from different vendors.
  • Product Rankings:  Consult “Best-in-Class” products rankings to see which firms performed strongly in specific areas.

The Outsourcing Vendor Analysis tool offers insightful components that help in strategizing, scoping, and selecting an appropriate vendor.

 

 

 

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