Achieving Cost Efficiency Through Investment Banking Outsourcing Services

Client

An asset management company with over 30 years of experience in equities and fixed-income investments sought to enhance operational efficiency by leveraging investment banking outsourcing services. To streamline its processes, the firm aimed to transition middle and back-office functions to an advanced shared services model through a third-party financial services provider.

Challenge

The client wanted to outsource their middle and back office operations while ensuring a smooth migration to the third-party investment manager suite (IMS). Key challenges included:

• Executing an on-time migration with limited resources
• Maintaining visibility into investment book of record/accounting book of record (IBOR/ABOR) data post-outsourcing
• Transitioning from a legacy in-house accounting platform to a third-party IMS with minimal business disruption
• Re-engineering current processes to improve efficiency
• Reducing capital and operational costs

The client’s primary focus was to streamline non-essential IT functions, optimize operations, and mitigate risks associated with migrating to an outsourced data provider.

Solution

Hexaware led the client user acceptance testing (CUAT) process to ensure a seamless transition. The approach included:

1. Planning: Developing migration strategies, configuring data, and setting up migration tools

2. Analysis: Identifying gaps in the migration process and implementing necessary improvements

3. Execution: Automating workflows and migrating data with precision

Hexaware’s key value additions:

Our team performed end-to-end validation of the system. This involved validating the data, syncing the data between various systems, and identifying gaps. To achieve this, we:

• Built an interim reconciliation model using macros
• Developed an Excel-based cash activity report for real-time end-user tracking
• Created interactive dashboards for improved operational insights
• Designed an interim management fee calculation model to enhance financial accuracy

Benefits

Hexaware’s approach to middle and back-office outsourcing delivered the following benefits:

• 30% cost savings achieved by outsourcing in-house operations
• Streamlined operational functionality by relying on a single data provider
• Enhanced focus on the core business for increased profitability
• Single source for all IBOR and ABOR, and reconciliation process
• Reduced effort on the reconciliation process

Summary

By leveraging Hexaware’s investment banking outsourcing services, the asset management firm achieved 30% cost savings by transitioning middle and back-office operations to a third-party provider. Hexaware ensured a seamless migration, enhanced data visibility, and automated workflows, minimizing business disruption while optimizing costs and efficiency. This enabled the client to focus on core business growth.

Visit our Asset Management page to discover how Hexaware’s tech-driven solutions can enhance efficiency, compliance, and decision-making.