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Global Middle Office Outsourcing Market 2015-2019

Global Middle Office Outsourcing Market 2015-2019

Global Middle Office Outsourcing Market

The concept of middle office outsourcing gained popularity among the asset managers post the 2008 financial crisis. The primary role of an asset manager is to maximize returns on the investments of their clients. Shifting market dynamics, profit pressures, and the demand for better returns are driving more and more investment managers to consider outsourcing for their investment operations. The phenomenon of outsourcing which was earlier limited to back-office functions has expanded to outsourcing of middle office functions. Asset managers are considering middle office outsourcing while evaluating their business models and core competencies.Now, the middle office services involve different stakeholders, such as brokers, custodians, and other third-parties, and hence, have increased manual intervention. This results in the need to automate the workflow process to some extent, which can be attained through middle office outsourcing. Also, the increase in investments globally has escalated the demand for middle-office service outsourcing for managing the data flow coming from middle office functions. Errors in the data may lead to wrong investment decisions or delay in reporting, thus affecting the reputation of asset managers. Owing to operating compulsions and the need for the asset managers to focus more on their core competency in investment management, outsourcing of middle office services is gaining momentum worldwide. Middle office outsourcing allows asset managers to achieve several operational advantages, such as cost savings and more predictable costing. Technavio analysts forecast the global middle office outsourcing market to grow at a CAGR of 7.50% during 2014-2019.

Covered in this Report

The Technavio report, namely Global Middle Office Outsourcing Market 2015-2019, is based on an in-depth market analysis, with inputs from industry experts. It covers the market landscape and its growth prospects in the coming years. The report also includes a discussion on the key vendors operating in the market.

Key Vendors

  • BNYM
  • Citi Group
  • JPMC
  • State Street
Other Prominent Vendors
  • Accenture
  • Genpact
  • Northern Trust
  • SEI
  • SS&C
  • SunGard
  • WNS
Market Driver
  • Changing Regulatory Compliances
  • For a full and detailed list, view our report
Market Challenge
  • Issues Pertaining to Data Security and Confidentiality
  • For a full and detailed list, view our report
Market Trend
  • Increase in Usage of Analytics
  • For a full and detailed list, view our report
Key Questions Answered in this Report
  • What will the market size be in 2019 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Middle Office Outsourcing Market 2015-2019

Technavio recognizes the following companies as the key players in the Global Middle Office Outsourcing Market: BNYM, Citi Group, JPMC and State Street

Other Prominent Vendors in the market are: Accenture, Genpact, Northern Trust, SEI, SS&C, SunGard and WNS

Commenting on the report, an analyst from Technavio’s team said: “Due to fluctuating market conditions, investment managers are keeping a close eye on the market situation and the need to evaluate performance on a daily basis is increasing. Investment managers who have entered into outsourcing arrangements are keen on re-evaluating the performance of middle office outsourcing functions. This is helping firms to provide insights to the outsourcing operations team, which helps them in addressing key priorities such as making efficiency improvements in line with future needs, rationalizing arrangements that may have fragmented with time, achieving an ongoing reduction of risks, and enhancing the ability to comply with increasing regulatory requirements. The demand for real-time monitoring of outsourced middle office functions among buyers has therefore seen a marked increase.”

According to the report, middle office services involve different stakeholders such as brokers, custodians, and other third parties, so there is a lot of manual intervention. Clients outsource their middle office functions to automate the work flow process to an extent. Also, in order to diversify the asset risks, hedge funds and private equity firms are investing less in liquid assets than before because of difficulties in valuations. As a result, the demand for middle office service outsourcing has increased as front office activities continue to depend heavily on the data coming from middle office functions.Further, the report states that Technavio believes that the momentum of outsourcing middle office functions is definitely going to increase in the short run but some of the growth inhibitors such as security concerns will affect the rate of adoption in the long run.

Companies Mentioned

BNYM, Citi Group, JPMC, State Street, Accenture, Genpact, Northern Trust, SEI, SS&C, SunGard, WNS

  • Executive Summary
  • List of Abbreviations
  • Scope of the Report
    • Market Overview
    • Product Offerings
  • Market Research Methodology
    • Market Research Process
    • Research Methodology
      • Table Market Research Methodology
  • Introduction
  • Situational Overview
    • Table Different Ways of Sourcing Middle Office Functions
  • Market Landscape
    • Market Overview
      • Table Overview: Asset Management Functions
      • Table Current and Future Scenarios of Middle Office Outsourcing
  • Impact of International Reforms on the Market
    • Market Size and Forecast
      • Table Global Middle Office Outsourcing Market 2014-2019 ($ billions)
    • Five Forces Analysis
  • Market Segmentation by Function
    • Segmentation by Function 2014
      • Table Global Middle Office Outsourcing Market by Function 2014
  • Market Segmentation by End-user
    • Segmentation by End-users 2014
      • Table Global Middle Office Outsourcing Market by End-user 2014
  • Geographical Segmentation
    • Market Segmentation by Geography 2014
      • Table Global Middle Office Outsourcing Market by Geography 2014
      • Americas
      • EMEA
      • APAC
  • Buying Criteria
    • Flexible System
    • Industry Expertise
    • Customization and Integration Capabilities
    • Brand Reputation
  • Market Growth Drivers
  • Drivers and their Impact
  • Market Challenges
  • Impact of Drivers and Challenges
  • Market Trends
  • Trends and their Impact
  • Vendor Landscape
    • Competitive Scenario
    • Market Share Analysis 2014
    • Other Prominent Vendors
      • Accenture
      • Genpact
      • Northern Trust
      • SEI
      • SS&C
      • SunGard
      • WNS
  • Key Vendor Analysis
    • BNY Mellon
      • Key Facts
      • Business Overview
      • Business Segmentation by Revenue 2013
        • Table BNY Mellon: Business Segmentation by Revenue 2013
      • Business Segmentation by Revenue 2012 and 2013
        • Table BNY Mellon: Business Segmentation by Revenue 2012 and 2013 (US$ billion)
      • Geographical Segmentation by Revenue 2013
        • Table BNY Mellon: Geographical Segmentation by Revenue 2013
      • Business Strategy
      • Recent Developments
      • SWOT Analysis
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      • Key Facts
      • Business Overview
      • Business Segmentation by Revenue 2013
        • Table Global Commercial Aircraft Interior Lighting Market 2015-2019: Business Segmentation by Revenue 2013
      • Business Segmentation by Revenue 2012 and 2013
        • Table Global Commercial Aircraft Aftermarket Parts Market 2015-2019: Business Segmentation by Revenue 2012 and 2013 (US$ billion)
      • Geographical Segmentation by Revenue 2013
        • Table Citigroup: Geographical Segmentation by Revenue 2013
      • Business Strategy
      • Recent Developments
      • SWOT Analysis
    • JPMorgan Chase
      • Key Facts
      • Business Overview
      • Business Segmentation by Revenue 2013
        • Table JPMorgan Chase: Business Segmentation by Revenue 2013
      • Business Segmentation by Revenue 2012 and 2013
        • Table JPMorgan Chase: Business Segmentation by Revenue 2012 and 2013 (US$ billion)
      • Geographical Segmentation by Revenue 2013
        • Table JPMorgan Chase: Geographical Segmentation by Revenue 2013
      • Business Strategy
      • Recent Developments
      • SWOT Analysis
    • State Street
      • Key Facts
      • Business Overview
      • Business Segmentation by Revenue 2013
        • Table State Street: Business Segmentation by Revenue 2013
      • Business Segmentation by Revenue 2012 and 2013
        • Table State Street: Business Segmentation by Revenue 2012 and 2013 (US$ billion)
      • Recent Developments
      • SWOT Analysis
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