Kristoffer Fürst says outsourced back-office operations duplicate work across clients instead of sharing it. His solution: a shared-service platform that lets vendors handle data maintenance and checks at scale without exposing client information. A pilot partner is already live.
Chapters
I think there's a fundamental flaw in the way that outsourced operations is working today. So outsourced middle and back office operations in Dalle, it is not as scalable as it could be. So if you take three investment managers, manager A, B and C, their operations is going to be different. They're essentially doing different things. So if they all chose to outsource to the same vendor independently of each other, so they, the outsourcing vendor in that case is performing the operations as a service to A, to B and to C. And the work that they perform is going to be exactly the same as it would be if A, B and C had their own internal operations. And that isn't a model that is as good as it could be. So we believe that there are actually things where A, B and C could benefit from being clients to the same service provider. So the service provider could perform checks, could perform data maintenance and setup that is essentially shared between these three managers. It doesn't mean that data is leaking between them, just means that the offering, the service offering becomes higher quality and more efficient. Now, there are ways where there are situations where outsourcing is still a good idea. If you're a small firm, maybe you just need one person operations, but you still actually need two or three in practice because you need to plan for vacations, etc. Redundancy or if you're startup firm and you have a million other things to worry about, then yes, it's a great offering. Once you are a bit more established, then the model doesn't benefit you as much as it potentially could. We have been working with the first partner to be able to offer this service where we as a technology provider enable the outsourced provider to have an economy of scale in their offering. It is now live. It's been working really, really well. And lately we've been having a couple of conversations with more service providers to enable them to scale their business and to offer higher quality offering tuner clients.
