Since the global financial crisis that began in 2007–08, the ever-present drive for cost efficiencies has stimulated the growth of outsourcing among capital markets firms as they tackle the continued pressures of reduced profitability and growing regulatory burdens.
As the after-effects of the Covid-19 pandemic continue to reverberate around the industry, demand for managed services has surged. Extensive remote working requirements—and the associated impacts across the trade lifecycle—hit financial services firms hard during the peak of the pandemic. Covid-19 has therefore acted as a catalyst for change, bringing the imperative for operational resiliency to the fore, as firms increasingly look to future-proof their businesses.
WatersTechnology and SmartStream recently conducted an online survey on the current and future shape of the managed services market across the industry. The research underlines the extent to which the quality of the relationship between capital markets firms and their service providers are key to the future development of managed services.