Does outsourcing mean giving up control of data?


Investment firms have varying degrees of comfort about outsourcing operational services. Some, out of an abundance of caution, may fear a potential loss of control over their data. Many institutional firms consider their reputation in the marketplace and their track record their biggest differentiators. As a result, they are hesitant to leverage operational outsourcing services, because they “live and die” by the quality and accuracy of their data. Now, however, even ardent skeptics are exploring how they can effectively leverage outsourcing, while still maintaining a certain level of control over their workflows. Ultimately, any control given up should be offset with ample transparency from your service provider.

One way to think about how an outsourcing relationship might impact your key workflows is to categorize them into three parts: firm owned, service provider owned, and shared. Often, the combination of these three types of workflows creates a “co-sourcing” relationship rather than a fully outsourced relationship.

Look at the co-sourcing relationship through a Venn diagram. On the left is the work that your service provider could manage. On the right is the work that your team potentially continues to manage in house. The overlapping area comprises shared operational workflows, where ownership can vary day to day.  In the eco-system of outsourcing, flexible, transparent co-sourcing creates the optimal environment for your operations and people to thrive.  If you’re interested in learning more please visit us at Advent Outsourcing Services on

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Posted in Traditional and Alternative Asset Management

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