Around fifteen years ago, mid-size asset management companies began outsourcing their back-office operations. Even though it was fairly new back then, it became industry standard soon after.
Outsourcing as a response to the new market standards
A complex and competitive environment within the Asset Management industry often leads companies to rely on outsourcing. The reasons for this vary from cost-effectiveness to prioritisation of certain goals of the company.
To remain competitive, asset managers must outsource part of their Middle and Back Offices to non-competing third parties. As regulatory reporting requirements increase, investment management companies require more investments to deploy new offerings. To top it off, they are expected to manage a significant amount of information as proof of performance and process reliability towards regulatory bodies.
Nonetheless, as much as outsourcing brings positive results, it often becomes an Achilles heel causing increasingly complex problems in terms of oversight.
Based on our past experience in the asset management industry and working with our customers, we’ve highlighted next to the most common struggles when outsourcing Middle or Back Offices and ways to overcome those hurdles.
Poor Team Management
You’ve heard it before – communication is the key to success. But what does it really mean in the work environment? Your intentions might be different from the way you are being understood and no one likes micromanaging. People come from extremely different environments with contrasting levels of knowledge and maturity and will interpret work relationships differently. For some, daily check-in will be inspiring and for others, it will become a nightmare. Here’s how Strivr helps to avoid these mishaps.
Strivr Solution: set clear expectations and continuous oversight
While communications tools like Microsoft Teams and Slack are effective for casual encounters, you will need a process management tool to avoid misunderstandings in process management. Strivr App is designed specifically for financial teams to overview the progress of several teams or projects at the same time.
Strivr adjusts to time zones and distinguishes business days from calendar days for recurring processes. Additionally, you can facilitate an overview of cross-border teams remotely via an integrated progress oversight. For example, with each task, you can track and analyse the time in which the task was completed. Time allocation has never been easier.
Moreover, you can set up notifications on your phone or e-mail, to remind you if the task hasn’t been finished. Talk about headspace, right?
Inaccurate Knowledge Transfer
Disorganised knowledge transfer can go in two ways – both from your own perspective and from your chosen vendor’s point of view. If the contract with your vendor was to end without clear documentation, you might be left with unclear procedures and scripts which are difficult to follow up. On the other hand, outsourcing a project with no clear guidance and work descriptions often leads to unmet expectations and misunderstandings.
Strivr Solution: keep organised and extensive in-app documentation
Strivr makes audits and due diligence easy with integrated work descriptions and in-app four eyes approval. Every process contains descriptions that are created by you. Not only does it save time when onboarding a new member within your team but also when delegating your workload to an outsourcing vendor. Additionally, each process can have digital double sign-off and be easily retracted in case of an audit.
Stay in control
Finally, outsourcing can be highly cost and time-efficient. Nonetheless, it shouldn’t become your blind spot. Establishing precise requirements, timelines, resources and progress views will help you stay in control all the time.
Outsourcing can be challenging but it can also advance your company faster, cheaper and more efficiently. With tools like Strivr – instead of putting out fires, you will be leading with confidence and trust.
Strivr is a custom-built process management solution for the Financial Services Industry. It enables users to showcase their work as the tool helps to track, prioritise and oversee business-critical recurring processes within their Operations and Administrative Teams.
The solution is proven to increase healthier work relationships, control and oversight of these tasks, in turn mitigating risk, reducing errors and increasing compliance.
Strivr details when the process needs to be completed, by whom and its priority level – alongside how to perform the task all in one window. In the main workspace, you can easily retrieve, verify and sign off the status of any process or task in real-time, from any location and on any device.
The best thing? There is no big implementation project – it’s a secure online platform, that is simple to use, and gives you a full audit trail.
Each and every client we work with has explained that their Operational Resilience has increased thanks to Strivr.
If you’re interested, you can book a free 15-minute consultation with us here.