Business Process Outsourcing on the rise in wealth management
Business Process Outsourcing (BPO) is at the top of the agenda of many COOs of wealth management institutions—defining the scope, identifying the right model, building the case and assessing the opportunity.
According to a recent Deloitte European survey, the focus of wealth management institutions is becoming increasingly customer-oriented: 79% of respondents agreed that their focus is on client relationships rather than on executing back office processes and activities in-house.
Thus, COOs are now looking beyond how well they can run their back office processes and activities in-house. The issue to be considered is whether managing these functions internally is part of the core strategy of the business, or whether a business process outsourcing solution would be appropriate for the majority of operations and IT or for certain processes.
Recent estimates and market analysis indicate that around 30% of Luxembourg wealth management institutions are prepared to consider outsourcing operations and IT in the future. Business Process Outsourcing is thus about to become one of the key topics on the agenda of many COOs.
On the supply side, the BPO solutions currently offered in Luxembourg remain very limited, with only a few players providing such services for wealth management institutions. The relatively low level of maturity will need to be taken into account when identifying the right BPO model.
Despite the numerous advantages of BPO, this opportunity must be carefully assessed, and the right model needs to be selected to ensure that BPO meets the expectations of your organisation.
Inside magazine issue 8, April 2015
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
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