Fund Administration Ripe For Outsourcing

The confluence of continued growth in the fund market (in terms of assets under management, complexity and number of active funds), a dynamic regulatory environment and increased market competition has created an environment that is ripe for both business process outsourcing (BPO) and information technology outsourcing (ITO). Just as was the case in the broader financial services marketplace - where the market dynamic of increasing competition and globalization has lead to a wave of BPO and ITO deals over the past five years - several recent transactions in the fund arena are evidence that the economic and operational considerations will combine to make the outsourcing of basic fund administration services and the IT backbone inevitable.