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Middle Office Outsourcing Market Size, Statistics, Industry Growth Rate and Forecasts Till 2025

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Ehtesham Peerzade

Market Highlights

The global middle office outsourcing market 2020 offers information that portrays that it has been evolving at a substantial CAGR, making the total market valuation higher than previously. The information accumulated after an in-depth study has been conducted through Market Research Future eminently focuses on the middle office outsourcing industry. The market’s growth course has been recorded from 2019 to 2025. The middle office outsourcing market is maximizing its revenue, amid COVID-19 breakthrough.

COVID-19 Analysis

MRFR understands that the outsourcing of middle office operations have been significantly resilient in the face of the COVID-19 outbreak. SARS-CoV-2 has managed to deeply alter the asset management operations, while remote working arrangements can stay in place during the lockdown period. On a dim note, fluctuating network capacity and broadband connectivity are some of the operational issues that the novel coronavirus has forced middle office teams to deal with during this period. Investment firms are finding it tough to communicate with their providers seamlessly, which has resulted in delays when it comes to information exchange and operation cycles.

Many of the investment managers are facing issues while trying to access various online tools, such as shared data files and portfolio management systems. This has impeded client reporting while the managers are not able to gain real-time updates of the market. The pandemic induced vulnerabilities in operations has compelled companies to outsource their middle office tasks to third parties, since a number of investment banks as well as various securities service providers have been able to weather COVID-19 impact comparatively well, in terms of operations. Middle office outsourcing has received a massive boost post the virus outbreak, with increasing adoption across a broader spectrum in various industries.

Main Drivers and Key Challenges

Middle office services engross different stakeholders such as custodians, brokers, and other third-parties. To automate the workflow process, clients outsource middle office functions to other enterprises. Private equity and hedge fund firms are finding it complex to diversify the asset risks to meet the regulatory compliances owing to the high investment involved. This has increased the need for middle office outsourcing services, which gave the market of it a stabled version and the growth witnessed to sturdy and long-lasting.

Furthermore, with the aim to gain a better position in the market and boost their profits, market participants are conceiving innovative ideas and new techniques as well as technologies in their middle office services. Also, predictive asset maintenance have emerged as resourceful services that are helping organizations bring down the maintenance cost, reduce the spending on scheduled repairs, and prevent any breakdowns. This can be a notable trend that can lead the market to greater heights in the coming years.

Speaking of trends, several companies are adopting big data analytics services for the evolution of unstructured data to more structured version in a bid to get valuable insights. Big data analytics help extract information from different online channels for the purpose of reviewing it with the use of modern analytical tools like predictive analytics. Such services also help comprehend the behavior pattern of consumers as well as businesses. Many of the enterprises with expertise in middle office outsourcing deal with massive amounts of data, in light of the rising uptake of analytical tools and technologies. In a nutshell, the increasing consumption of big data analytics services can be a lucrative opportunity for the players in the middle office outsourcing industry in the ensuing years.

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Segmentation:

The global middle office outsourcing market has further been segmented along the following lines:

In terms of offering segment, the global market has included trade management, portfolio management, and others. Portfolio management solutions have included ease of integration, scalability for growth, ease of use, compliance readiness, and quicker information access. Trade management offerings have also included trade transmission & settlement follow-up, trade confirmation reconciliation, corporate action booking, portfolio position reconciliation, and dissemination of settlement instructions.

In terms of component segment, the global market has included broker-dealers, banking & management, stock exchanges, and more. The investment banking & management service offerings have also included capital raising, strategic advice, and risk management. Broker-dealer services have further included clearance and settlement of equity and fixed income transactions.

Regional Study

The geographic analysis of the global middle office outsourcing market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

The biggest gainer in the global market has been North America, given the frequent technological advancements taking place across the United States (U.S) and Canada. The US is in the lead, thanks to the high uptake of digital transformation; along with the rising use of next generation technologies such as analytics and big data. The advent of automation has been a key trend in the regional market. MRFR also highlights the booming financial services industry and the constant innovations to be some of the chief growth inducers in the middle office outsourcing market of the region.

Europe can claim the second biggest share in the market over the next couple of years, on account of the rising need among enterprises to asses information in real-time. Surge in regulatory compliances, reduced margins, unprecedented rise in cyber-attacks, and several technological advancements can help the regional market gain high momentum during the appraisal period.

A majority of financial institutions in APAC is opting for automation for middle-office operations in an attempt to do away with unnecessary processes, offer useful insights, bring down the costs, and reduce operational risks. Cloud-based solutions are also observing significant traction across businesses in the region, making APAC the fastest expanding market.

Renowned Companies

The Bank of New York, BNP Paribas SA (France), Caceis (France), Northern Trust Corporation (US), Accenture (Ireland), Brown Brothers Harriman (US), Adepa Global Services S.A.(Luxembourg), SS&C Technologies, Inc. (US), JPMorgan Chase & Co.(US), Hedgeguard (France), GBST Holdings Ltd. (UK), Citigroup Inc. (US), State Street Corporation (US), Societe Generale Securities Services (France), Mellon Corporation (US), are some of the renowned companies listed in the MRFR report.

Recent News

May 2020

Northern Trust has been chosen by Modular Asset Management, an Asian investment firm, to provide a range of middle-office outsourcing services, along with collateral management, risk compliance monitoring and fund administration services to Modular’s recently started Cayman Islands Modular Asian Macro Fund and associated entities.

Browse Complete Report @ https://www.marketresearchfuture.com/reports/middle-office-outsourcing-market-9553

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