Why outsourcing is in

Outsourcing is being embraced by the asset management community. John Ferry discovers the reasons behind its popularity, while uncovering some potential conflicts of interest

Falling profit margins are forcing fund managers to look at ways to cut soaring operational and technology costs. So, it should hardly be a surprise that outsourcing – paying an outside company to perform certain functions that were traditionally completed in-house – is gaining in popularity.

Indeed, the logic behind the business case for increased outsourcing by asset management firms is so strong that banks have been snapping up outsourcing providers. Recent transactions include State Street’s

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