Big outsourcing projects can strike fear into asset management executives, including CFOs and heads of operations, not to mention the risk team. On July 14, our asset management and outsourcing experts Maroof Ahmed, Director, International Wealth Management- Asset Management at Credit Suisse, Mal Cullen, Head of Global Digital Solutions at BNY Mellon|Asset Servicing and Digital, Jack Dahlstedt, Senior Vice President and Global Head of the Alpha Platform Solutions at State Street and Mike Parrinello, Financial Services Segment Director at Guidehouse discussed the major considerations and keys to success of outsourcing programs, as well as the oversight and governance requirements. In this webinar series, our panel of experts touched on the cost model of outsourcing (variable vs. fixed), increasing complexity, the accountability of both asset managers and outsource providers, reactions to COVID-19 and the related impact to the future of asset servicing.
Jack Dahlstedt and Mike Parrinello had an interesting discussion on cost: Jack indicated that “[Cost]…is certainly a factor… clients are spending a lot more time trying to understand that cost, not only current, but what the cost avoidance might be in the future if they do select partners to outsource some of those functions.”
Mal Cullen provided insight on operating models: “I start with data… it’s about having the flexibility to outsource and not impact the front office and that’s why a data strategy is really key. Having good foundation, good data management strategy, data governance strategy in place before you undertake an outsourcing journey is number one; I think bringing an outside firm in to take an objective view of your current operating model is really key because if you don’t have a solid understanding of what your current model is, it’s really hard to transition or change that.”
Access this webinar recording where the experts candidly discuss trends, future of work, and the keys to cost-controlled success.
Having good foundation, good data management strategy, data governance strategy in place before you undertake an outsourcing journey is number one.
Mal Cullen, Head of Global Digital Solutions
BNY Mellon | Asset Servicing and Digital