MRFR understands that the outsourcing of middle office operations have been significantly resilient in the face of the COVID-19 outbreak. SARS-CoV-2 has managed to deeply alter the asset management operations, while remote working arrangements can stay in place during the lockdown period. On a dim note, fluctuating network capacity and broadband connectivity are some of the operational issues that the novel coronavirus has forced middle office teams to deal with during this period. Investment firms are finding it tough to communicate with their providers seamlessly, which has resulted in delays when it comes to information exchange and operation cycles.
Market Research Future (MRFR) believes that the middle office outsourcing market 2020 can achieve substantial gains at a high rate between 2019 and 2025 (evaluation period). We will provide covid-19 impact analysis with the report, offering an extensive market evaluation post the coronavirus disease outbreak.
Many of the investment managers are facing issues while trying to access various online tools, such as shared data files and portfolio management systems. This has impeded client reporting while the managers are not able to gain real-time updates of the market. The pandemic induced vulnerabilities in operations has compelled companies to outsource their middle office tasks to third parties, since a number of investment banks as well as various securities service providers have been able to weather COVID-19 impact comparatively well, in terms of operations. Middle office outsourcing has received a massive boost post the virus outbreak, with increasing adoption across a broader spectrum in various industries.
Main Drivers and Key Challenges
The dire need of businesses to enhance their overall efficiency can be a prime booster for the middle office outsourcing market. Attempting to cater to varying demands of organizations, players are devising innovative products and services, while developing strategic schemes that can strengthen functions and operations of the organization. This is bound to assist with market growth in the following years.
Furthermore, with the aim to gain a better position in the market and boost their profits, market participants are conceiving innovative ideas and new techniques as well as technologies in their middle office services. Also, predictive asset maintenance have emerged as resourceful services that are helping organizations bring down the maintenance cost, reduce the spending on scheduled repairs, and prevent any breakdowns. This can be a notable trend that can lead the market to greater heights in the coming years.
Speaking of trends, several companies are adopting big data analytics services for the evolution of unstructured data to more structured version in a bid to get valuable insights. Big data analytics help extract information from different online channels for the purpose of reviewing it with the use of modern analytical tools like predictive analytics. Such services also help comprehend the behavior pattern of consumers as well as businesses. Many of the enterprises with expertise in middle office outsourcing deal with massive amounts of data, in light of the rising uptake of analytical tools and technologies. In a nutshell, the increasing consumption of big data analytics services can be a lucrative opportunity for the players in the middle office outsourcing industry in the ensuing years.
Also Read: http://www.marketwatch.com/story/middle-office-outsourcing-market-to-gain-higher-impetus-post-covid-19-outbreak-middle-office-outsourcing-market-size-share-challenges-and-opportunities-2020-07-10
The Bank of New York, BNP Paribas SA (France), Caceis (France), Northern Trust Corporation (US), Accenture (Ireland), Brown Brothers Harriman (US), Adepa Global Services S.A.(Luxembourg), SS&C Technologies, Inc. (US), JPMorgan Chase & Co.(US), Hedgeguard (France), GBST Holdings Ltd. (UK), Citigroup Inc. (US), State Street Corporation (US), Societe Generale Securities Services (France), Mellon Corporation (US), are some of the renowned companies listed in the MRFR report.
The geographic analysis of the global middle office outsourcing market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
The biggest gainer in the global market has been North America, given the frequent technological advancements taking place across the United States (U.S) and Canada. The US is in the lead, thanks to the high uptake of digital transformation; along with the rising use of next generation technologies such as analytics and big data. The advent of automation has been a key trend in the regional market. MRFR also highlights the booming financial services industry and the constant innovations to be some of the chief growth inducers in the middle office outsourcing market of the region.
Europe can claim the second biggest share in the market over the next couple of years, on account of the rising need among enterprises to asses information in real-time. Surge in regulatory compliances, reduced margins, unprecedented rise in cyber-attacks, and several technological advancements can help the regional market gain high momentum during the appraisal period.
A majority of financial institutions in APAC is opting for automation for middle-office operations in an attempt to do away with unnecessary processes, offer useful insights, bring down the costs, and reduce operational risks. Cloud-based solutions are also observing significant traction across businesses in the region, making APAC the fastest expanding market.
Middle office outsourcing market size has been considered for offering and component.
Offering-wise, the market sections are trade management, portfolio management, and others.
Components assessed in the market study are stock exchanges, broker-dealers, banking & management, and others.
Northern Trust has been chosen by Modular Asset Management, an Asian investment firm, to provide a range of middle-office outsourcing services, along with collateral management, risk compliance monitoring and fund administration services to Modular’s recently started Cayman Islands Modular Asian Macro Fund and associated entities.