Latest Content » OPERATIONS, TRADING & TECHNOLOGY  » Outsourcing

— Alain Closier,SG GSSI

Roger Aitken reports on Société Générale Global Securities Services for Investors’ move out of safe investment banking territory and into the provision of outsourcing services.

— Austin: we had gone in different directions

Many view the Schroders/JPMorgan breakdown as more a case of outsourcing evolving than dying. But business process analysis and technology issues keep on cropping up, writes Gerry O’Kane.

— Wisniewski: need proper investment

Higher than expected costs and complexity have provoked some negative responses to outsourcing, but as managers are faced with an ever-increasing list of regulatory requirements, outsourcers must invest in a viable technology solution while attracting and retaining clients, says Gerry O’Kane.

As if to destroy a few more cogs in the troubled outsourcing machine, Schroders is to receive £20m (€29m) from JP Morgan after the two announced their five-year custody and fund accounting outsourcing project was over. The word failure was never mentioned, but the “operating models are no longer sufficiently aligned”, according to Schroders.

New regulations are forcing investment firms to outsource functions previously untouched, says Howard Mannion.

— Rondinelli: ‘increasingly important to market to the life assurance business too’

The desire to cut costs and minimise risk as well as the growth of fund of fund products are all stimulating moves to outsource, says Gerry O’Kane.

It might not have been the biggest of outsourcing contracts, but the Gartmore deal with HSBC could be said to reflect the trends of the times. June saw 115 people moved from Gartmore to HSBC in a full lift-out of back and middle office operations, with HSBC adding its name to the list of those performing full lift-outs.

Benchmarking, projecting the future, assessing the operational risks and consideration of an exit strategy are key to a successful outsourcing deal. Gerry O’Kane explains.