BNP Paribas survey proves outsourcing is norm 08 August 2014London Reporter: Catherine Van de Stouwe
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A BNP Paribas and YouGov survey finds ‘strategic outsourcing is the new norm’ for middle- and back-office functions.
Eighty-six percent, nearly all of the 50 senior figures representing some of the UK’s leading sell side institutions, said they outsourced these functions to specialist providers, such as custodian banks.
The survey shows the strategic need to focus on core activities such as research and execution, and protect against the effects of the market and regulatory change, are significantly more important than short term cost efficiency.
A deciding factor is choosing a provider is not cost, but client service and product quality.
UK head of sales and relationship management for banks and brokers at BNP Paribas Securities Services, Julien Kasparian, said: “The changes affecting out industry create more than simple cost concerns for our clients.”
“They are facing the pressure of market change, a raft of new regulations and increasing technology costs. Providers of outsourcing need to be prepared to take on this burden for their clients, allowing them to focus on developing their core business; this is the way outsourcing can bring real value.”
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