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Outsourcing: Conditions for success

12/05/2020

Front-to-back outsourcing solutions: Combining back-office fund accounting, portfolio management and the custody business to create economies of scale, increase operational efficiency and provide asset managers with new value-added services.

How is the asset servicing space evolving today?

The asset servicing space is undergoing much the same changes and challenges as the buy-side in general, with cost pressure being the main one. To stay competitive, asset servicers are looking at simplifying and consolidating their operations and services by moving away from legacy and fragmented IT architecture.

At the same time, asset servicers are also facing rising levels of expectations from their clients in terms of data quality, reporting, transparency and flexibility. To address this evolving demand, timely and agile access to consistent data is essential.

Being the first to market with a truly integrated front-to-back solution, SimCorp supports asset servicers and custodians in this endeavour by streamlining operations and creating a scalable and flexible platform to ultimately improve their clients’ experience.

What are the opportunities available to asset servicers in this context?

In this area, we have identified two major trends. The first one is combining back-office fund accounting and the custody business to create economies of scale and increase operational efficiency. For these players, SimCorp Dimension is unique because the platform can cover both the custody component and the fund accounting component within a single integrated system.

The second trend is the need for asset servicers to provide their clients with new value-added services, with the front-office being a natural extension of services, from the provision of risk management solutions all the way up to asset management and portfolio management solutions. This is the value proposition captured by SGSS’ CrossWise solution enhanced by SimCorp Dimension.

Why partnering with Simcorp provides SGSS with the best foundation?

SimCorp has partnered with SGSS for more than 15 years, and the success of CrossWise is a testimonial to our trusted journey together, as well as the relevance of our value proposition. The partnership has focused and continues to focus on solving key challenges, not only for SGSS but also those of its clients. This means delivering cutting-edge tools and technology as well as access to SimCorp’s expertise to improve day-to-day operations. It also goes beyond this, to provide desired business outcomes, whether it is being faster to market, capturing new market opportunities or improving competitiveness. As we transform our delivery model to “SimCorp as-a-Service”, we make it easier, more flexible and more cost effective to consume solutions, ultimately benefiting SGSS and its clients. Several buy-side organisations in Europe now rely on CrossWise, and we see this trend growing fast, supported by smaller and medium-sized insurance and asset management companies as well as hedge funds.  At the same time, this strategy also enables SimCorp to expand its reach into small to medium-size organisations that would otherwise not be direct SimCorp Dimension clients, thereby growing our global client base.

What a partnership between Simcorp Dimension and SGSS brings to the buy-side?

We are confident that our asset servicing partnerships serve the buy side’s interests and needs by covering the broadest footprint of the investment management lifecycle; we aim to build a more beneficial and value-added investment ecosystem. The relationship with SGSS combines a ‘best in class’ investment management solution together with SGSS’ industry best practices to deliver tangible, value-added business outcomes. By doing so, we enable the buy side to scale for growth by focusing on its core business and clients in an increasingly competitive market.

Emmanuel Colson 
Senior Vice President, Managing Director 
SimCorp Southern Europe

Emmanuel Colson began his career at Arthur Andersen. He then joined Thomson Reuters where he headed the Business Solutions division for France, and later served as Sales Director for France, Benelux, Iberia and then as Head of Global Accounts and Global Head of Solutions Business Development. In 2013 Emmanuel joined SimCorp as Head of the French market unit. Having successfully established SimCorp in the French market, in 2017, he became Managing Director of the SimCorp Southern Europe region, including the expansion into Italy and Spain.

 

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